The G7 committee converged in Niigata, Japan, for talks about the worldwide financial implications of central bank digital currencies (CBDCs) and the laws governing the trading of cryptocurrency assets, among other things.
The committee reaffirmed its approval for developing CBDCs in a communique outlining the discussions, with the condition that more research is required to make sure they are founded on transparency, the rule of law, sound economic governance, cybersecurity, and data protection.
The International Monetary Fund’s (IMF) work on developing a “CBDC Handbook” was deemed as “welcome,” and the G7 committee was anticipating the initial set of deliverables to be released by the 2023 World Bank Group and IMF Annual Meetings, which are scheduled to take place on Oct. 15 in Marrakesh, Morocco.
Members of the committee also debated the contentious “Travel Rule,” which requires any financial institution processing cryptocurrency transactions worth more than $3,000 to disclose the sender’s name, address, and account information. The committee’s position was stated clearly in the communiqué:
“We support the Financial Action Task Force’s (FATF) initiatives to accelerate the global implementation of the FATF Standards on virtual assets, including the ‘travel rule,’ as well as its work on emerging risks, including those posed by DeFi arrangements and peer-to-peer transactions.”
Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States are represented on the G7 committee, with the European Union serving as a “non-enumerated” member.
The Niigata meeting comes ahead of the annual G7 summit, which will be held in Hiroshima from May 19 to 21.
While it is not certain whether US President Joe Biden will be present due to the imminent debt ceiling impasse in Congress, the Financial Times reports that “the US wants its rich country partners to apply more economic pressure on China” during the summit.
Surprisingly, while Ukraine was mentioned 17 times in the communique of the Niigata meeting (Russia was mentioned 18 times), China did not appear at all.
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