G7 members are preparing to set some guidelines for digital central bank coins (CBDC), The Japan Times reported on Monday.
In the draft document prepared by the members, the digital central bank money at the national level is an issue, still to be determined at the international level “of your principles; can guide CBDC research within the G7 and beyond, emphasizing shared values such as transparency, the rule of law, trust in economic management, and establishing a common set of principles.” is stated.
The list, which consists of 13 items in total, is expected to be discussed at the G7 meeting on Wednesday.
G7 members; emphasizes the importance of proper regulation and supervision of the new payment system to be created, the privacy standards to be applied to protect the personal data of citizens, and being transparent about how this information is used.
The draft document, reviewed by Kyodo News, discussed the potential implications for monetary sovereignty of the widespread use of a national CBDC by citizens in a foreign country.
“While the use of a particular government’s CBDC abroad may leave other countries vulnerable to consequences such as currency substitution, collaborating with relevant international organizations to take appropriate action can help mitigate its negative effects.”
Other principles included in the guide were related to topics such as combating fraud and mitigating the risk of circumventing financial sanctions.
No member of the G7, which includes the USA, Germany, the United Kingdom, France, Italy, Japan, Canada and the European Union, has taken a final decision on digital central bank money.