Group of Seven advanced economies said on Wednesday that any digital currency issued by a central bank must “support and do no harm” to the bank’s ability to fulfil its mandate on monetary and financial stability, and must also meet rigorous standards.
If issued, a central bank digital currency (CBDC) would complement cash and could act as a liquid, safe settlement asset and an anchor for the payments system, the G7 nations said after their meeting on Wednesday.
“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 said in a statement.
While CBDCs could enhance cross-border payments, the G7 nations said they have a “shared responsibility to minimize harmful spillovers to the international monetary and financial system.”
