Japan intends to make central bank digital currencies (CBDC) and cross-border regulation of cryptocurrencies a key theme in this year’s G7 meetings under its presidency, according to Masato Kanda.
Kanda is a top Japanese currency diplomat currently serving as the Vice Finance Minister of International Affairs. He made the comments during a seminar at the Peterson Institute for International Economics (PIIE) in Washington.
Kanda said that the G7 member states would make it a priority to help developing countries establish their own CBDCs and join the digitalization race.
He added that the main concern is ensuring that the countries meet the common standards developed by G7 central banks for retail CBDCs. Kanda said:
“We have to address risks from the development of CBDC by ensuring factors such as appropriate transparency and sound governance.”
Kanda said that despite the various benefits of digitalization, it is important to ensure that these new systems do not compromise the stability of the overall financial system of the world.