Much like G20, G7 focuses on CBDC Standards & Crypto Regulations

With the popularity and adoption of cryptocurrencies across nations, crypto regulations are becoming a financial regulator’s preference now.

International institutions and communities have started showing interest in the burgeoning asset class industry’s regulation. After being a hot topic at the G20 conferences, discussions of CBDC standards, cryptocurrencies, and their regulations will reportedly take place at the G7 summit in Japan.

During a Tuesday, April 11 seminar in Washington, Japan’s Finance for International Affairs Vice Minister Masato Kanda said that cryptocurrencies and CBDCs would be part of discussions in G7. The move came in the wake of efforts towards eradicating the challenges emerging for the global community due to rapidly evolving digital technology.

Reuters reported, citing Kanda, that the Group of Seven (G7) will look for methods to support Central Bank Digital Currency (CBDC) initiatives across developing countries. The involvement will likely help ensure international standards for CBDC development and consistency.

The Japanese minister said there is a need to assess the risks involved in the CBDC development while looking for “transparency and sound governance” in several crucial factors. This year’s G7 summit, organized in Japan, will prioritize the issue.

Kanda said, “The G7 will consider how best to help developing countries introduce CBDC consistent with appropriate standards, including the G7 public policy principle for retail CBDC.”

Digital technology’s rapid innovation brings multiple benefits, the minister said, but the challenges remain. These challenges include cyber-security, misinformation, divides in social and political structure, weakening financial markets, etc.

Recalling one of the biggest collapses in the crypto industry, Bahamian crypto exchange FTX going bankrupt, the Japanese minister said the incident was alarming and significant enough to compel lawmakers to look for cross-border crypto regulations.

In addition, Kanda raised concerns regarding different crypto regulations across countries, for which he stressed harmony. “For crypto assets, there are diverging views among countries. But consensus is that we need more regulation, particularly after the FTX shock,” he added.

The Group of Seven, known as G7, includes the world’s leading economies. It comprises the United States, United Kingdom, Canada, France, Germany, Italy, and Japan. The European Union is also part of the informal international organization as a “non-enumerated member.” Japan is holding the presidency of the 49th G7 Summit 2023.

Crypto regulations, one of the summit’s priorities, might result in fruitful results given the participant countries’ stances. Japan has enacted crypto regulations in the region Britain is keen to become a “crypto hub,” which would necessarily require rules. The European Union is working on “Markets in Crypto-Assets (MiCA)” and will likely come into effect by the third quarter of 2024. Regulators in the United States are also keen to bring crypto regulations into the country.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing