G7 to study support measures for developing countries to introduce CBDC

“Introduce CBDC that meets international standards”

Finance Minister Masato Kanda said on the 11th that the G7 (seven developed countries) will consider measures to support developing countries to introduce central bank digital currencies (CBDCs) that meet appropriate international standards. bottom. Reuters reported.

Japan is chairing the G7 this year, and CBDC is one of the main themes of discussion.

Finance Minister Kanda said, “We must address the risks posed by CBDC development by ensuring transparency and sound governance.” In 2023, he said, as a priority, he will consider how best to help developing countries implement CBDCs in line with appropriate international standards.

As an international standard, the “Public Policy Principles for CBDC for Retail” announced by the G7 can also be cited.

In 2021, the G7 will publish standards that stipulate, among other things, that CBDCs must not harm the existing financial system. It also includes strict standards for privacy, transparency, and data protection, and lists matters that countries should consider before issuing a CBDC.

connection: G7 Announces Common Principles for CBDC (Central Bank Digital Currency)

Kanda continued that the rapid innovation of digital technology has various benefits, but at the same time it brings cybersecurity, the spread of false information, social and political divisions, and the risk of destabilizing financial markets. .

In particular, after the FTX bankruptcy in November last year, there has been a consensus around the world to tighten regulations on cryptocurrencies.

For example, in March, the IMF (International Monetary Fund) released a report on the “macro-financial impact of cryptocurrencies.” It argues that if the spread of virtual currencies and stablecoins progresses, it will pose risks to monetary policy, exchange rate management, capital movement control measures, etc.

connection: IMF warns of cryptocurrency impact on banks = G20 report

The G7 is also reportedly expected to discuss tightening regulations in the cryptocurrency sector. The G7 plans to issue a joint declaration addressing the potential risks posed by cryptocurrencies to the financial system, with the intention of, among other things, increasing industry transparency and consumer protection.

connection: Why did the Japanese government start promoting “Web3 policy”?Summary of important points and related news

Japan poised to lead the regulatory debate

The G7 Summit will be held in Hiroshima in May. The G7 finance ministers and central bank governors meeting will also be held in Niigata just days before the Hiroshima summit. Japan is an international leader in regulating virtual currencies, and is said to be poised to lead discussions as the chair country.

connection: G7 discusses tightening regulation of virtual currency = report

The insolvent FTX Group is currently in bankruptcy proceedings in the United States. Of the customer assets frozen by the FTX Group, only those of Japanese users can be withdrawn at present. FTX attorney Andy Dietderich attributed this to Japan’s cryptocurrency regulations being “relatively robust”.

connection: FTX considers reopening of virtual currency exchange

LDP Web3 Whitepaper

The LDP Digital Society Promotion Headquarters web3 project team (PT) has just released the “web3 white paper (draft)” on the 6th. He presented issues that should be addressed to resolve issues and issues that should be discussed to start and deepen discussions for the spread of web3, and also made recommendations regarding the tax system for virtual currency transactions.

The white paper states, “Beyond crypto winter, Japan may be the first to welcome spring. We are in a position to preach to the world.”

connection: Liberal Democratic Party web3PT publishes proposals on taxation of virtual currency transactions

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