G7 Countries Jointly Develop Guidelines For Central Bank Digital Currencies
The finance heads of the G7 countries have developed common guidelines for central bank digital currencies (CBDCs). According to Reuters, the heads have announced their requirements for any digital currency issued by the Central Bank. Any digital currency issued by the state must "support, not harm" the ability of the Central Bank to fulfill its tasks of ensuring financial stability, as well as meet strict standards.
CBDC should complement cash and act as a liquid and secure settlement asset, as well as the basis for payment systems. CBDCs need to comply with stringent privacy, transparency and accountability standards to protect user data. While CBDCs can improve cross-border payments, the G7 countries have said they have a shared responsibility to minimize dangerous consequences for the international monetary and financial system.
Central banks around the world are stepping up efforts to develop their own digital currencies, which will modernize financial systems, as well as speed up domestic and international transactions. China is the leader in this area.
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