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G7 finance leaders lay out guidelines for central bank digital currencies

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Oct 13 (Reuters) – Group of Seven superior economies stated on Wednesday that any digital foreign money issued by a central bank should “support and do no harm” to the bank’s skill to meet its mandate on financial and monetary stability, and should additionally meet rigorous requirements.

If issued, a central bank digital foreign money (CBDC) would complement money and will act as a liquid, secure settlement asset and an anchor for the funds system, the G7 nations stated after their assembly on Wednesday.

But the currencies should be issued in a approach that don’t infringe upon the central banks’ mandates, and meet rigorous requirements of privateness, transparency and accountability for safety of consumer knowledge, they stated.

“Any central bank digital currency (CBDC) should be grounded in long-standing public commitments to transparency, rule of law and sound economic governance,” the G7 finance leaders stated in a press release.

While CBDCs might improve cross-border funds, the G7 nations stated they’ve a “shared responsibility to minimize harmful spillovers to the international monetary and financial system.”

Global central banks have stepped up efforts to develop their very own digital currencies to modernize monetary programs and pace up home and worldwide funds.

China has been main the pack towards issuing a digital foreign money, whereas G7 central banks have been working to set frequent requirements towards issuing CBDCs as some proceed with experiments.

Reporting by Leika Kihara in Tokyo; Editing by Christopher Cushing and Leslie Adler

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