The G7 Finance Minister has met with several international organizations in the United Kingdom for the past few days to discuss “building a strong, sustainable, balanced and inclusive global economic recovery.” The goal of creating a global minimum tax of 15% for large tech companies and creating a “green global financial system” was mixed with statements about the central bank’s digital currency or CBDC.
Research on digital currencies issued by central banks and, in certain circumstances, has been accelerating in recent months. The fact that China has already issued and continues to expand the pilot digital yuan and the advent of fiat-based stable coins recognize that central banks need to speed things up regarding the future of money. Most developed countries have internal projects that review the benefits and challenges of CBDC, with a particular focus on how digital money affects monetary policy.
According to the joint statement, innovations in digital money and digital payments can bring great benefits, but they can also raise public policy and regulatory issues.
To quote the G7:
“The G7 Central Bank is investigating the opportunities, challenges, and financial and financial stability implications of the Central Bank Digital Currency (CBDC), and we, as the Ministry of Finance and the Central Bank, are within their respective responsibilities. CBDC, as a form of central bank money, acts as a liquid and secure settlement asset and as an anchor for the settlement system. Keep in mind that it is possible. Our aim is to ensure that the CBDC is based on a long-standing public sector commitment to transparency, legal rule and sound economic governance. Must be powerful and energy efficient. May support innovation, competition, inclusion and enhance cross-border payments. Operate within an appropriate privacy framework to minimize spillover effects. We need to keep it down. We will work towards a common principle and will announce our conclusions later this year. “
The G7 continued to state that the global Stablecoin project should not be put into operation until it properly addresses relevant legal, regulatory and supervisory requirements through proper design and compliance with applicable standards. This statement, formerly known as Libra, is now Facebook’s attempt to create a global non-sovereign currency that has been reactivated as Libra, a shrinking digital currency that is about to start as a digital dollar. It may be a reaction to failure.
G & is working on international cooperation to ensure common standards, including assisting international standards-setting bodies in reviewing existing regulatory standards, emphasizing the importance of addressing identified gaps. Say there is.
“We support the FSB’s ongoing work to review regulatory, oversight and surveillance issues for the implementation of high-level recommendations for global stablecoin arrangements. We support cross-border payments. We continue to support the ambitious implementation of the G20 Roadmap to strengthen our efforts and welcome the publication of FSB talks on goals to address the four challenges of cross-border payments. “
Notable Financial Action Task Force (FATF) A standard for preventing money laundering and fraud in the global financial system. The G7 has stated that the implementation of the standards is still “uneven,” and is calling on Member States to strengthen the situation in the fight against money laundering, along with “FATF-style regional agencies.” Although we do not mention the name of cryptocurrencies, digital assets are included in the FATF standard.Recently, VASP (Cryptocurrency Service Provider) has been able to keep records of buyers and sellers in almost all cryptocurrency transactions. ) Is a requirement outlined in the “Travel Rules” that you enforce.