In recent weeks, one of the hottest and most discussed topics among the seven advanced economic nations has been CBDCs. As the world economy and its financial systems are pacing towards digitalization, the seven nations considered more advanced than other countries are leaning towards CBDC.
These seven countries are now recognizing the importance of having the central bank digital currencies (CBDC) onboard. Therefore, the countries have decided that they will be moving towards the adoption of CBDCs. Finally, these seven nations, prominently referred to as “G7”, have come to a consensus.
The consensus around cryptocurrencies is that G7 will move towards the adoption of CBDCs. However, it is to be ensured that no harm is caused by the CBDCs or their adoption. The CBDCs must also be standardized, which means that the countries must come up with streamlining guidelines towards them.
The G7 members have also come to the conclusion that in order for the CBDCs to be accepted, adopted, and rolled out, they need to meet certain requirements and criteria.
The sources have confirmed that the conclusive meeting between the firms had taken place on Wednesday, October 13, 2021, in Washington. There, the leaders of the G7 nations talked about CBDCs at great length. The meeting was to come to common grounds and a set of rules and regulations that would be implemented in the CBDC sector.
It has been revealed that in the meeting, the leaders came up with 13 public policy principles. These principles were proposed for the sole purpose of regulations of the CBDCs. Adopting these implementations would improve the performance, regulatory infrastructure, security, and rolling out of the CBDCs.
The countries included in the G7 are countries such as the United States, the United Kingdom, Japan, Italy, Germany, France, and Canada. In the meeting, the countries were unanimous in saying that they have no issues with the development of the CBDCs.
However, the CBDCs should be complete as per the regulatory and compliance standards. The CBDCs are to be developed and issued keeping in mind that they must do no harm to the financial stability of the central banks. The countries want to keep the stability of the traditional financing alive and for that, the CBDCs will have to be standardized.
The G7 released a unanimous statement in which they talked about how the CBDC can co-exist with other traditional financial systems. Most importantly, the CBDCs can co-exist with cash and become one of the major assets for settlements and liquidity.
Lastly, the G7 members commented on the issuance method of digital currencies. The G7 commented that the digital currencies as well as the central bank digital currencies have to be fully interoperable and energy-efficient. They must be capable of sustaining the same level of interoperability that is offered through other digital and cash transactions.