The advanced nations of the Group of Seven (G-7) will give top priority to how they can better assist developing countries with the introduction of their central bank digital currencies (CBDCs), Senior financial diplomat for Japan, Masato Kanda, spoke at a seminar in Washington, DC, on Tuesday.
According to Kanda, Japan’s Vice Minister of Finance for Foreign Affairs, fast-moving digital technologies give great benefits in many years, including cheaper and faster cross-border payments available to a bigger public, but the new technologies have onset of concerns.
“We need to make sure that things like proper transparency and strong governance are in place in order to mitigate dangers from the rise of CBDCs.”
G-7 emphasis on global crypto rules
This year’s G-7 summit will be held in Hiroshima under the auspices of Japanese Prime Minister Fumio Kishida. According to reports, discussions around cryptocurrency regulation are anticipated to pick up speed before a meeting of the G-7 countries’ finance ministers and central bankers in mid-May. The G-7 intends to strengthen international crypto rules with an emphasis on enhancing consumer protection and company transparency.
Kanda noted that the Financial Stability Board’s (FSB) work to develop high-level recommendations on crypto asset activities on the market and on global stablecoin arrangements is important, and the effective implementation of this recommendation is also crucial.
He added,
“The collapse of FTX was a serious wake-up call on the need for proper consistent regulation across borders.”
Due to Japan’s very strict legal framework for cryptocurrencies, FTX Japan customers were among the first to receive their money back from the defunct cryptocurrency exchange.
The Group of 20 major nations has given the Financial Stability Board (FSB) and the International Monetary Fund the goal of presenting a jointly prepared synthesis paper for global crypto laws by September or October.
