G7 to set out guiding principles on central bank digital currencies
The Group of Seven (G7) industrialized nations are reportedly discussing a draft document that sets out standards for the creation and issuance of central bank digital currency (CBDC). Among issues considered “essential” for any CBDC, the document cited appropriate national regulatory and oversight frameworks for the new payment system, as well as “rigorous” standards of privacy and accountability for the protection of users’ data and transparency on how information will be secured and used. The paper also pointed to concerns over a significant use of any CBDC by residents of a foreign country, which could lead to currency substitution and loss of monetary sovereignty in both the issuing and foreign country. [Read more]
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