• Breaking: The G7 Nations are set to release guidelines for the issuance of CBDCs

  • The G7 council, comprised of seven industrialized nations, is set to issue principles for the issuance of Central Bank Digital Currencies (CBDC). The G7 council is made up of the United Kingdom, Canada, France, Germany, Italy, Japan, and the United States; however, no G7 member has yet issued a CBDC.

    The draft guidelines are said to have 13 points, with the main emphasis on transparency and privacy. The draft rules could be approved at a meeting of financial chiefs scheduled for Wednesday in Washington.

    The draft guidelines acknowledge the rise of digital payments in recent years, as well as the growing popularity of cryptocurrencies in general. The draft also mentions the importance of focusing on user privacy and security in light of concerns about Chinese CBDC being used as a surveillance tool. The draft guidelines stated that, while issuance is a country’s sovereign decision, the CBDC must,

    “By establishing a common set of principles and emphasizing the fundamental importance of shared values like transparency, rule of law, and sound economic governance, these principles can guide and inform retail CBDC exploration in the G-7 and beyond.”

    Can G7 Help CBDC Plans Succeed?

    With China’s advancement in the field, the debate over CBDCs has heated up. The world’s most populous state is years ahead of the curve in CBDC implementation, having not only completed the development of digital Yuan, but also running nationwide pilot programs to test its various use cases for nearly two years.

    The majority of countries around the world are working independently on CBDC development, but they are all years behind China. Thus, the G7’s interest in CBDC could hasten development while also assisting in the establishment of a common standard among various nations, which would aid in cross-border functionalities.

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