Central bank digital currencies (CBDCs) should “support and not undermine” the ability of monetary authorities to fulfil their responsibilities in ensuring monetary and financial stability. This was stated by the finance ministers and central bank chiefs of the G7 in the published recommendations.
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In the G7, they believe that, if issued, a CBDC should complement cash, acting as a liquid and safe settlement asset tied to existing payment systems. To protect users’ data, the instrument should meet strict standards of privacy, transparency and accountability.
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“Any CBDC must be grounded in long-standing public commitments to transparency, the rule of law and prudent economic governance,” the document says.
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The G7 said international coordination and cooperation on these issues will ensure that innovations in the public and private sectors are effective and, at the same time, safe for users and for the financial system as a whole.
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Leaders also addressed the regulation of stablecoins. They believe issuers of such instruments should, even before launch, ensure compliance with regulatory standards and eliminate risks to financial stability.
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In 2020, the Financial Stability Board of the G20 issued a similar statement.
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None of the G7 member countries has yet launched a national digital currency, but many are developing projects in this space.
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Back in April, the Bank of England and Her Majesty’s Treasury established a joint working group to study CBDCs. At the same time, the regulator placed seven vacancies in the group researching digital currency.
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In September, the House of Lords’ Economic Affairs Committee began examining central bank digital currencies.
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G7 Public Policy Principles for Retail CBDC FINAL by ForkLog on Scribd
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