G7 nations lend support towards CBDC adoption
The rich countries that make up the Group of Seven (G7) will prioritize determining how to best assist poor countries in introducing their own central bank digital currency (CBDC).
At a seminar held April 11 in Washington, DC, Masato Kanda, Japan’s chief financial diplomat, shared his thoughts.
The FTX failure was a harsh wake-up call to the need for adequate and consistent supervision across borders, according to Masato Kanda, Japan’s top financial diplomat.
Fast-moving digital technologies have provided huge benefits for many years, including cheaper and faster cross-border payments within reach of a larger audience. However, according to Kanda, the latest innovations have the beginning of challenges.
“It is our responsibility to mitigate the risks posed by the establishment of CBDCs by ensuring conditions such as adequate transparency and effective governance.”
Masato Kanda, Japan’s top financial diplomat
As a result, Kanda believes it is necessary to complete the work done by the Financial Stability Board (FSB) to develop high-level recommendations on crypto-asset market activities and global stablecoin rankings. Hence, it underscores that effective implementation of this recommendation is also crucial.
Japan will host the G7 meeting to discuss the project
This year’s G7 meeting will be hosted by Japanese Prime Minister Fumio Kishida in Hiroshima. It has been said that discussions about regulating cryptocurrencies are likely to accelerate in the run-up to a meeting of finance ministers and central bank governors from the G7 nations that will take place in mid-May. The Group of Seven (G7) intends to make global crypto legislation more stringent, with a focus on enhancing company transparency and consumer protection.
As a result of Japan’s unusually strict regulatory framework for cryptocurrencies, users of defunct cryptocurrency exchange FTX Japan were among the first to get their money back when the company went bankrupt as the nation continued to push for its crypto ambitions.
The G20 has tasked the Financial Stability Board (FSB) and the International Monetary Fund (IMF) with the responsibility of producing a joint synthesis paper of global crypto regulations and submitting it by the end of September or the beginning of October.
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