G7 to Discuss Crypto Regulation and Digital Currency Standards

According to Japan's top currency diplomat Masato Kanda, the Group of Seven (G7) major economies will think about how to best assist poor nations in introducing central bank digital currencies (CBDC) in accordance with relevant international norms.
The move will be one of the main topics of G7 negotiations that Japan will chair this year in an effort to address the problems the world community faces as a result of fast developing digital technology, he noted.
Kanda, vice finance minister for foreign affairs, said at a conference in Washington that "we have to address risks from the development of CBDC by ensuring factors like appropriate transparency and sound governance."

The G7 would prioritize helping developing nations launch CBDC in accordance with suitable standards this year, including the G7 public policy concept for retail CBDC, he said.
In the issuing of a digital currency outside of the G7, China has been in the lead. They have created consistent standards for issuing CBDCs while the individual G7 central banks continue their tests.

The rapid development of digital technology, in Kanda's opinion, brings both new opportunities and challenges, such as issues with cyber-security, the spread of false information, social and political divisions, and the potential for financial market instability.
Last year's failure of the cryptocurrency exchange FTX "was a serious wake-up call" for policymakers to establish international regulation, he claimed.

"Countries' perspectives on cryptocurrency assets vary somewhat. However, there is general agreement that we require more regulation, particularly in light of the FTX shock, Kanda said.

Speaking on behalf of the policymakers assembling in Washington for the spring International Monetary Fund (IMF) meetings this week, Kanda said that addressing the debt vulnerabilities of some middle-income countries will be a top objective of this year's G7 discussions.
When asked what the outcomes of the debt discussions this week may be, Kanda responded that it might be "a bit difficult" to see tangible progress for nations like Zambia, Ghana, and Ethiopia.

With a plan to establish a creditor's committee on Thursday, proposed by Japan, France, and G20 chair India, "for Sri Lanka, hopefully we can have progress," Kanda added.