G7 finance officials say CBDCs should support, ‘do no harm’ to monetary and financial stability
- G7 officials said central bank digital currencies (CBDCs) would complement cash and could act as a liquid, safe settlement asset and an anchor for the payments system
- They also stressed the importance of privacy standards, cybersecurity, the need to protect users’ data and transparency on how information will be secured and used
G7 finance officials on Wednesday endorsed 13 public policy principles for retail central bank digital currencies, saying they should be grounded in transparency, the rule of law and sound economic governance, the US Treasury Department said.
“Innovation in digital money and payments has the potential to bring significant benefits but also raises considerable public policy and regulatory issues,” Group of 7 (G7) finance ministers and central bankers said in a joint statement.
“Strong international coordination and cooperation on these issues helps to ensure that public and private sector innovation will deliver domestic and cross-border benefits while being safe for users and the wider financial system.”
The finance officials met in person, with some joining by video, in Washington on Wednesday during the annual meetings of the International Monetary Fund and World Bank under the leadership of British finance minister Rishi Sunak.
Any CBDC must support, and ‘do no harm’ to, the ability of central banks to fulfil their mandates for monetary and financial stability