The team of seven progressive economic countries has recently been debating over the CBDCs (Central-Bank-Digital-Currencies) this week and concluded that no harm should be done by them, and severe standards would be executed in this respect. A meeting was arranged among the Finance frontrunners on 13th October to have a discussion on the CBDCs in which 13 principles for public policy were endorsed to be implemented. The G7, which contains the U.S., the U.K., Japan, Italy, Germany, France, and Canada, affirmed that no damage should be caused to the ability of central banks to uphold financial stability.
While pronouncing a mutual statement, the central bankers and finance ministers from the G7 stated that solid international cooperation and management on such problems assists to guarantee that the private and public sector advancement will provide cross-border as well as domestic advantages while being secured for consumers as well as the broader financial system. It additionally mentioned that cash would be complemented by CBDCs, and they could act as safe and liquid settlement assets along with anchoring the already present systems of payments. The participant countries of G7 affirmed that a mutual responsibility had been shared by them to decrease the harmful overabundance that prevailed in the international financial as well as monetary system.
The issuance of CBDC should be fulfilling the long-established public promises regarding rule-of-law, transparency, and resilient economic governance, as disclosed by the statement. The G7 has not yet decided about the launch of a CBDC. However, several countries like the U.K. are enthusiastically doing research over the economy as well as the technological impacts to be created by such a currency. Repeating an analogous statement given by the bigger G20, they echoed that no project of stablecoins on a global level should start until the oversight, regulatory, and legal requirements are addressed by it. The comments may be referring to the Diem cryptocurrency being planned by Facebook, which has put a lot of pressure on central bankers as well as financial leaders.
The United States has been delaying its CBDC plans due to the highly skeptical attitude of the Federal Reserve regarding digital dollars. It has been reported previously in September that there is a chance for Americans to be left behind in the perspective of finance and technology if a CBDC project is not taken into consideration by it.