The Group of Seven (G7) advanced economies will consider how best to help developing countries introduce central bank digital currencies (CBDCs) consistent with appropriate international standards, Japan’s top currency diplomat Masato Kanda said on Tuesday, April 11, 2023.

The move will be one of the main themes of Japan-led G7 discussions this year, as part of efforts to address the challenges facing the global community from fast-moving digital technologies.

“We must address the risks of CBDC development by ensuring factors such as proper transparency and good governance,” Kanda said, quoted from Yahoo Finance, Friday (14/4/2023).

Kanda added, as a priority this year, the G7 will consider how best to help developing countries introduce CBDCs in accordance with appropriate standards, including the G7’s public policy principles for retail CBDCs.

Outside the G7, China has led the pack in issuing digital currencies. G7 central banks have set common standards for issuing CBDCs as some continue experiments.

Kanda said the rapid innovation of digital technology provides various benefits but also new challenges such as cyber security, the spread of misinformation, social and political disparities, and the risk of destabilizing financial markets.

“The collapse of crypto exchange FTX last year is a serious warning” for policymakers to make cross-border regulations,” he said.

As for crypto assets, Kanda said there was little difference in views between countries. But the consensus is clear the G7 needs more regulation, especially after the FTX shock