G7 Meets in Japan to Discuss CBDCs, Crypto Regulations

Recently, the G7 committee met in Niigata, Japan, to discuss, among other things, the global financial implications of central bank digital currencies (CBDCs) and the laws governing the transfer of cryptocurrency assets.

In a communiqué summing up the discussions, the committee reaffirmed its support for the development of CBDCs with the caveat that additional research was required to ensure that they are based on “transparency, the rule of law, sound economic governance, cyber security, and data protection.”

The communique described the International Monetary Fund‘s (IMF) efforts to develop a “CBDC Handbook” as “welcome” and stated that the G7 committee was looking forward to the publication of the first set of deliverables at the 2023 World Bank Group and IMF Annual Meetings, scheduled for Oct. 15 in Marrakesh, Morocco.

Members of the committee also discussed the controversial “Travel Rule,” which requires any financial institution processing cryptocurrency transactions exceeding $3,000 to disclose the name, address, and account information of the sender.

According to the communiqué, the committee’s position was made clear:

“We support initiatives by the Financial Action Task Force (FATF) on accelerating global implementation of the FATF Standards on virtual assets, including the ‘travel rule’, and its work on emerging risks, including from DeFi arrangements and peer-to-peer transactions.”

The G7 committee consists of representatives from Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States; the European Union is a “non-enumerated” member.

The Niigata meeting precedes the annual G7 summit, which is scheduled to take place from May 19 to 21 in Hiroshima.

The Financial Times reports that “the U.S. wants its rich nation partners to increase economic pressure on China” during the summit.

While it is still uncertain whether President Joe Biden will attend, as the impending debt ceiling impasse has Congress in a stalemate, the U.S. wants its rich nation partners to increase economic pressure on China.

China was not mentioned at all in the Niigata meeting’s communiqué, whereas Ukraine mentioned it 17 times and Russia 18 times.