Japan intends to make cross-border regulation of central bank digital currencies (CBDC) and virtual currencies a major theme of its presidency, the G7 meeting this year. Masato Kanda.
Kanda is currently Japan’s top currency diplomat, serving as vice minister of finance. He made the comments at a seminar at the Peterson Institute for International Economics (PIIE) in Washington.
CBDCs
Kanda said G7 members will prioritize helping developing countries to establish their own CBDCs and participate in the digitalization race.
He added that the main concern is to ensure countries meet the common standards for retail CBDCs developed by the G7 central banks. Mr. Kanda said:
“Risks from CBDC development should be addressed by ensuring factors such as adequate transparency and sound governance.”
Kanda said that despite the various benefits of digitization, it is important to ensure that these new systems do not undermine the stability of the global financial system as a whole.
crypto regulation
Kanda said cryptocurrencies have enabled unprecedented levels of cross-border payments, allowing more people to access the financial system than ever before. also need to be addressed by regulation, he added.
All G7 members agree that stronger regulation of cross-border cryptocurrencies has become necessary following high-profile collapses and bankruptcies in the cryptocurrency industry like FTX in 2022. .
“There is a bit of a difference of opinion between countries when it comes to crypto assets. But the consensus is that more regulation is needed, especially after the FTX shock.”
Kanda said there is an urgent need to harmonize cross-border cryptocurrency rules, adding that the Financial Stability Board is the best regulatory body to tackle the issue.
Japan G7 Presidency
Japan is set to chair this year’s G7 meeting, and Kanda’s statement points to the future of far-reaching digital money, both in the form of CBDC and crypto.
Japan is arguably one of the most progressive countries when it comes to regulating the cryptocurrency industry and has leaned in favor of cryptocurrencies in recent months. The ruling party recently said,white paper” contains recommendations on how to boost the domestic crypto industry.
However, it is unclear whether Japan’s approach to cryptocurrencies will be imitated by other G7 countries. Regardless, as more people become accustomed to digital assets, the focus on CBDC and crypto will eventually boost adoption.
Crypto regulation as a top agenda item for the G7, with Japan pushing for CBDC, first appeared on CryptoSlate.
