- G7 leaders gathered in Washington to discuss CBDC and approved 13 policies.
- They also requested that new CBDCs do not harm the bank capacity.
- Central bankers and G7 ministers enhance domestic and cross-border benefits.
On October 13, G7 financial leaders gathered in Washington to discuss Central Bank Digital Currencies (CBDC). During the meeting, they approved 13 public policy principles regarding their implementation.
The G7 includes Canada, France, Germany, Italy, Japan, UK, and the US. Besides, they requested that the newly launched CBDCs “do not harm” the bank’s capacity and maintain financial stability.
The G7 finance ministers and central bankers released a statement, saying:
Strong international coordination and cooperation on these issues help to ensure that public and private sector innovation will deliver domestic and cross-border benefits while being safe for users and the broader financial system.
In addition, the leaders of the G7 countries have confirmed that they share the responsibility of minimizing “adverse spillovers to the international monetary and financial system.” But, one G7 country has yet to issue a CBDC. But several, including the UK, are continually analyzing the technological and economic results.
Furthermore, the US is moving its feet with its CBDC’s plans, and the Federal Reserve remains very skeptical about digital dollars.
However, China is already ahead of the pack with its digital yuan, and its latest crackdown on crypto will likely be part of its grand plans to promote further and control central bank money flows.