The Group of Seven (G7) finance officials endorsed 13 public policy principles for retail central bank digital currencies (CBDCs) on Wednesday, stating that they should be grounded in transparency, the rule of law and sound economic governance, the Treasury Department said, according to Reuters.
“Innovation in digital money and payments has the potential to bring significant benefits but also raises considerable public policy and regulatory issues,” G7 finance ministers and central bankers said in a joint statement.
“Strong international coordination and cooperation on these issues help 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.
In their joint statement, the G7 officials said central bank money in the form of CBDCs would complement cash and could act as a liquid, safe settlement asset and an anchor for the payments system.
No G7 authority has decided to issue a CBDC and careful consideration of the potential policy implications will continue, the statement said.
“We reaffirm that any CBDC should be grounded in our long-standing public commitments to transparency, the rule of law and sound economic governance,” the statement said.
The G7 officials stressed the importance of rigorous privacy standards, cybersecurity, the need to protect users’ data and transparency on how the information will be secured and used.
They reiterated that no global stablecoin project should begin operation until it addresses legal, regulatory and oversight requirements, echoing a similar statement made by the larger Group of 20 finance officials earlier Wednesday.
Stablecoins are a type of digital coin pegged to traditional currencies.