The financial leaders of the Group of Seven agree that digital currencies will replenish funds and should not be harmful to the monetary system.
Central Bank Digital Currencies Might ‘Do No Harm’
A group of seven of the world’s largest economies discussed central bank digital currencies this week. The conclusion was that the currencies issued by the state must meet very strict criteria and “do not harm” the economy.
The Group of Seven met in Washington on October 13 to discuss the issue of central bank digital currencies. They endorsed 13 principles of public policy related to their implementation.
The G7 consists of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. This group ruled that the newly launched central bank digital currencies “should not harm” the central bank’s ability to maintain financial stability. In a joint statement . said The finance ministers and central bank governors of the Group of Seven are as follows:
“Strong international coordination and cooperation in this area helps ensure that innovation in the public and private sectors delivers local and cross-border benefits while being safe for users and the broader financial system.”
She added that digital currencies would complement cash, not replace it. It can act as a liquid and secure settlement asset in addition to anchoring existing payment systems. The statement said digital currencies should be energy-efficient and fully interoperable on a cross-border basis.
The leaders of the G7 countries stressed that they have a shared responsibility to reduce the “harmful repercussions on the international monetary and financial system.”
G7 Cryptocurrency Plans
The statement added that the issuance of the digital currency should be “based on long-term public commitments to transparency, the rule of law and sound economic governance.” None of the G7 countries have issued a digital currency yet. A number of countries, such as the United Kingdom, are actively looking at technology and economic impacts.
The United States is not yet convinced of the usefulness of digital currency. The Federal Reserve remains very skeptical about digital dollars. However, economists say America risks being left behind both technically and financially if it doesn’t think seriously about the digital dollar.
China is already ahead of the pack with its own digital yuan. The latest crackdown on cryptocurrency is likely part of his grand plans to further strengthen and monitor central bank money flows.
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