Japan’s top finance diplomat, Masato Kanda, announced on Tuesday that the Group of Seven (G7) nations will work together to help developing countries introduce central bank digital currencies (CBDCs) in line with international standards. 

See related story: G7 nations set to push for stricter cryptocurrency regulations at Japan summit in May

Fast facts

  • “We have to address risks from the development of CBDC by ensuring factors such as appropriate transparency and sound governance,” Kanda, who also serves as Japan’s vice finance minister for international affairs, said in a seminar in Washington, DC. 
  • Kanda stressed that CBDC will be a priority of this year’s summit, that the G7 nations “will consider how best to help developing countries introduce CBDC consistent with appropriate standards, including the G7 public policy principle for retail CBDC.” 
  • Kanda added that the collapse of the crypto exchange FTX last year was “a serious wake-up call” for policymakers to create regulation across borders. 
  • The G7 leaders from Britain, Canada, France, Germany, Italy, the U.S., and Japan will meet in Hiroshima, Japan, from May 19 to 21. This year’s G7 Summit is expected to advance crypto policy discussions and set global standards for CBDC implementation.
  • Japan, the elected chair of this year’s summit, recently approved a white paper on Web3 and crypto adoption, laying out recommendations for nurturing the crypto industry in the country. Since last year, Japan has announced concerted efforts to create a crypto-friendly environment, such as making moves to allow domestic investors to trade certain stablecoins issued overseas on local platforms.
  • Digital currencies have been attracting worldwide interest, with at least 114 countries exploring CBDCs, according to the Atlantic Council.
  • Outside of the G7, China has been at the forefront of CBDC development, with its digital yuan transactions surpassing 100 billion yuan ($13.9 billion) in October last year.

See related story: Japan’s finance ministry to launch panel to assess digital yen: NHK

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