G7 says cryptocurrencies should be subject to same norms as regular finance

The G7 issued an official statement today. The statement mentioned three points related to digital finance. Among them, the main note is that the statement mentioned issues related to CBDC and stable currency regulation.

"Digital innovation in payments is a key driver of economic progress and development, especially through faster, cheaper, more transparent and inclusive cross-border payment services," the statement read. In this context, we highlight the opportunities and implications of Central Bank Digital Currencies (CBDCs) and their potential role in future payment transactions. We review the October 2021 Retail Central Bank Digital Currency Public Policy Principles” and reaffirms that any central bank digital currency should be based on transparency, the rule of law, sound economic governance, cybersecurity and data protection. We encourage jurisdictions that are exploring CBDC to study CBDC Application at the international level, especially its cross-border use. A CBDC with cross-border functions has the potential to stimulate innovation that can meet user needs for more efficient international payments, so continued international cooperation is essential for understanding and minimizing the issuance of CBDC Any possible negative impact on the international monetary and financial system is very important."

On the topic of stablecoins, the G7 stated: "The G7 supports the work of the Financial Stability Board (FSB) to regulate and address financial stability risks posed by all forms of encrypted assets and welcomes increased global cooperation , to address regulatory issues related to cryptoassets, including cross-border payments. In light of the recent turmoil in cryptoasset markets, the G7 urged the Financial Stability Board, in close coordination with international standard-setters, to promote the rapid development and implementation of regulatory requirements for cryptoasset issuers and Comprehensive regulation of service providers, with a view to holding crypto assets, including stablecoins, to the same regulatory standards as the rest of the financial system. In particular, the G7 has called for the swift implementation of the Financial Action Task Force's (FATF) "travel rule" ", and strengthen disclosure and regulatory reporting, for example, in terms of reserve assets backing stablecoins. We reiterate that any stablecoin project cannot Should not be operational. The G7 remains committed to setting high regulatory standards for global stablecoins, following the principles of same activity, same risk, same regulation.”

Author: Zeqi YI