Officials from the G7 countries have endorsed 13 public policy principles for central bank digital currencies, saying they should be based on transparency, the rule of law and sound economic governance.
“Innovations in digital money and payments can bring significant benefits, but also raise significant public policy and regulatory issues,” the G7 finance ministers and central bankers said in a joint statement.
“Strong international coordination and cooperation on these issues helps to ensure that innovation in the public and private sectors will bring domestic and international benefits while being safe for users and the financial system as a whole,” the document also says.
The statement was released following a meeting in Washington during the annual meetings of the International Monetary Fund and the World Bank under the chairmanship of UK Treasury Secretary Rishi Sunak.
Representatives of the G7 believe that central bank money in the form of digital currencies (Central Bank Digital Currencies or CBDC) will complement cash and can act as a liquid, secure asset for settlements and the backbone of the payment system.
The principles reflect the importance of strict requirements for privacy, cybersecurity, user data protection, and transparency of how information will be protected and used. Digital currencies must be energy efficient and operate in an open competitive environment. At the same time, the need to minimize any harmful spillover effects for the international monetary and financial system was noted.
Note that no G7 country has made a decision to issue CBDC yet.
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