The Group of Seven (G7) advanced economies has set its sights on aiding developing countries in the introduction of central bank digital currencies (CBDCs) that adhere to international standards, Japan’s top currency diplomat Masato Kanda said on Tuesday.
During a recent speech in preparation for the International Monetary Fund and World Bank Spring 2023 meetings, Japan’s top currency diplomat Masato Kanda revealed that the move would be among the key themes of G7 discussions, alongside other grave issues like Russia’s invasion of Ukraine. He noted that G7 could address challenges the global community face from fast-moving digital technology by providing developing countries with detailed guidelines to develop CBDCs.
“We have to address risks from the development of CBDC by ensuring factors such as appropriate transparency and sound governance,” he said, adding, “As a priority of this year, the G7 will consider how best to help developing countries introduce CBDC consistent with appropriate standards, including the G7 public policy principle for retail CBDC.”
The Japanese minister mentioned that the rise of digital technology has also introduced new challenges, such as cyber-security, the spread of misinformation, social and political divides, and the risk of destabilising financial markets.