G7 Minister of Finance and Banker adopt guidelines for digital currencies of the Central Bank-Finance
G7 Minister of Finance and Banker adopt guidelines for digital currencies of the Central Bank-Finance
Every digital currency issued by a central bank must support financial and currency stability, the financial leaders of the G7 member states have insisted on it. State coins should also ensure privacy, transparency and data protection, according to the officials. The forum passed 13 principles of public order for digital currencies for retail and emphasized that "CBDCs are not 'cryptoassets'.
CBDCs must "do no damage", say the G7 financial chiefs
Finance of the group of the seven ( g7 ). In a published opinion , the participants confirmed:
Every CBDC should be based on our long -term public obligations to transparency, the rule of law and solid economic management.
A sovereign digital currency that is to be used by households and companies must "support, support and not to" support and not damage currency and financial stability, said the G7 financial chiefs after the meeting on Wednesday. "A CBDC would complement cash" and could serve as an "anchor for the payment system", they added. It should also meet “strict standards” in relation to privacy, transparency and data protection and should be resistant to various risks such as cyber threats, fraud and illegal use.
The finance ministers and central bankers of the G7 recognize the role that CBDCs could play when improving the cross -border payment transactions. At the same time, the high-ranking civil servants recognize their common responsibility to minimize what they describe as "harmful effects on the international currency and financial system".
When discussing innovations in the area of private digital money, political decision -makers reaffirm their obligation to ensure that developments are safe there and are compatible with the political goals of the group. If it is not properly regulated, a stable coin could be considerable risks to the financial stability, point out and at the same time warn that volatile, non -secured cryptocurrencies could not be used as a means of payment.
G7 publishes 13 principles of public order for CBDCs for retail
In a test report of the intergovernmental forum published, the differences between central banks on the one hand and cryptocurrencies and stable coins on the other are further highlighted. "CBDCs are not 'cryptoassets'," emphasize the group's financial bosses and point out that the latter are not spent by a central bank and that Fiat-based digital coins are liability of private companies. However, participants could be involved in the broader infrastructure of CBDCs.
The authors point out that no currency authority in the G7 countries has yet decided to issue their own digital currency, and have divided their recommendations through the formulation of 13 principles of public order for retail CBDCs, which are intended to facilitate political consultations. National governments and international organizations can refer to these guidelines that have been divided into two categories: "Basics and opportunities".
monetary and financial stability is one of the basic principles. By designing a CBDC that supports the goals of public politics, central banks can use the digital currency as an instrument to improve stability and to cope with the effects on financial intermediaries, the report says. As part of the legal and governance framework, the G7 officials emphasize the need to protect the rule of law and maintain economic policy control. Politicians emphasize:
Appropriate national legal, regulatory, supervisory and supervisory frames are essential to ensure trust, resistance, security and trust in every CBDC.
Data protection is another important principle that the regulatory authorities require to ensure the accountability obligation for the protection of user data and the transparency regarding the way information is secured and used. This is considered essential for trust and confidence in a CBDC. Operative resilience and cyber security is the fourth principle that calls on all units involved in a CBDC ecosystem to develop data security and cyber security strategies.
competition is a key aspect, and the G7 financial chiefs believe that "CBDCs exist alongside existing means of payment and should act in an open, safe, resilient, transparent and competitive environment, promotes the selection and diversity of payment options." While state digital currencies are expected to offer more accessible, faster and cheaper payments, the principle of illegal financing focuses on the obligation to contain their use to facilitate crime.
Spillover should be addressed to avoid the risks of damage to the international currency and financial system, including the currency sovereignty and financial stability of other countries. The energy consumption of a CBDC is another important aspect. The energy and environmental principle provides for the structure of efficient infrastructures for digital currencies that support international engagement for a "net zero" economy.
According to the G7 report, CBDCs offer a number of options in areas such as payments and from the public sector and cross-border functions in which the new digital fiat currencies can potentially reduce friction losses. The principles of the Category Opportunities, to be taken into account the group of the seven the currency authorities recommend, also include the digital economy and innovation, international development and financial inclusion.
The new G7 guidelines come according to A in June, as the financial chiefs of the group agreed, a number of common rules for to publish digital currencies of the central banks. The US note bank , the European central bank , and Bank of Russia are part of the development and output of CBDCs. So far, the People’s Bank of China has the most advanced project and has already had numerous target = "_ blank" href = "https://news.bitcoin.com/chinese-banksseek-plication-for-yuan-in-investment-and-insurance/" rel = "noopener"> digital yuan .
Do you expect the currency authorities to follow the principles of public order for CBDCs set out by the G7 financial chiefs? Let us know in the comment area below.
Bedy verification : Shutterstock, Pixabay, Wiki Commons
Kommentare (0)