The Group of Seven (G-7) nations are set to prioritize support for developing countries in the introduction of their own central bank digital currencies (CBDCs), according to Masato Kanda, Japan’s senior financial diplomat.
At a seminar in Washington DC, Kanda emphasized the benefits of digital technologies for cheaper and faster cross-border payments, but also stressed the importance of addressing risks associated with CBDC development, including transparency and sound governance.
The G-7 is expected to accelerate discussions on crypto regulation ahead of a finance ministers and central bankers meeting in mid-May. Plans to increase global crypto regulation and improve business transparency and consumer protection are on the agenda. Kanda also highlighted the importance of implementing high-level recommendations from the Financial Stability Board (FSB) on crypto asset activities and global stablecoin arrangements.
FTX Japan customers were among the first to be reimbursed from the collapsed crypto exchange, thanks to Japan’s tight regulatory regime for crypto. The G-20 has tasked the FSB and the International Monetary Fund with producing a jointly-synthesized paper on global crypto rules by September or October. Japan will host this year’s G-7 summit in Hiroshima.