On Saturday, the G7 issued a communique covering central bank digital currencies (CBDC) and global stablecoins.
Regarding CBDCs, the G7 finance ministers and central banks stated a CBDC could act as a safe settlement asset and an anchor for the payment system. At the same time, they addressed some of the concerns about CBDCs stating a desire to support innovation, competition and financial inclusion. A CBDC should operate “within appropriate privacy frameworks and minimise spillovers,” said the communique.
Finally, they stated they are working on common CBDC principles and will publish something later in the year. In October last year, the central banks of multiple G7 members published a joint CBDC paper in conjunction with the Bank for International Settlements (BIS). That BIS paper included Sweden and Switzerland, which are not G7 members and Saturday’s G7 communique also represents finance ministers, not just the central banks.
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