G7 finance leaders lay out guidelines for central bank digital currencies
Reuters
Published Oct 13, 2021 08:54PM ET
Updated Oct 13, 2021 09:30PM ET
(Reuters) - Group of Seven advanced economies said on Wednesday that any digital currency issued by a central bank must "support and do no harm" to the bank's ability to fulfill its mandate on monetary and financial stability, and must also meet rigorous standards.
If issued, a central bank digital currency (CBDC) would complement cash and could act as a liquid, safe settlement asset and an anchor for the payments system, the G7 nations said after their meeting on Wednesday.
But the currencies must be issued in a way that do not infringe upon the central banks' mandates, and meet rigorous standards of privacy, transparency and accountability for protection of user data, they said.
"Any central bank digital currency (CBDC) should be grounded in long-standing public commitments to transparency, rule of law and sound economic governance," the G7 finance leaders said in a statement.
While CBDCs could enhance cross-border payments, the G7 nations said they have a "shared responsibility to minimize harmful spillovers to the international monetary and financial system."
Global central banks have stepped up efforts to develop their own digital currencies to modernize financial systems and speed up domestic and international payments.
China has been leading the pack toward issuing a digital currency, while G7 central banks have been working to set common standards toward issuing CBDCs as some proceed with experiments.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.