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The G7 committee recently met in Niigata, Japan to discuss, among other things, the global financial implications for central bank digital currencies (CBDCs) and laws governing the transfer of crypto assets.
In a communiqué summarizing the discussions, the committee reaffirmed its support for the development of CBDCs, with the proviso that further research is needed to ensure they are based on “transparency, the rule of law, good economic governance, cyber security and data protection.”
The communiqué described the work of the International Monetary Fund (IMF) to develop the CBDC Handbook as “welcome” and said the G7 committee looks forward to publishing the first set of results to be released by the World Bank Group and the IMF annual meetings in 2023.— scheduled on October 15 in Marrakesh, Morocco.
＼#G7新潟／
G7た。
共同声明の詳細はこちら▼https://t.co/V1Vgq4IB4Ipic.twitter.com/Tfytu0R6lw
— 財務省 (@MOF_Japan) May 13, 2023
Committee members also discussed the controversial “travel rule” requiring any financial institution that processes crypto transactions worth more than $3,000 to disclose the sender’s name, address, and account information. According to the communiqué, the committee’s position was clearly articulated:
“We support the initiatives of the Financial Action Task Force (FATF) to accelerate the global implementation of the FATF Standards on Virtual Assets, including the “travel rule”, and its work on emerging risks, including in relation to DeFi mechanisms and peer-to-peer transactions . “.
The G7 committee includes representatives from Canada, France, Germany, Italy, Japan, the UK and the US, with the European Union serving as an “unlisted” member.
The meeting in Niigata precedes the annual G7 summit, which is due to be held in Hiroshima from May 19 to 21.
Related: G7 to Cooperate on Tougher Crypto Regulation: Report
While it is still unclear whether US President Joe Biden will attend as a looming debt ceiling deadlock causes congressional deadlock, the Financial Times reports that “the US wants its rich-country partners to step up economic pressure on China” during the summit.
Interestingly, while Ukraine was mentioned 17 times in the communiqué of the Niigata meeting (Russia received 18 mentions), China was not mentioned at all.