Arab Press

بالشعب و للشعب
Saturday, Aug 16, 2025

G7 to set out guiding principles on central bank digital currencies

G7 to set out guiding principles on central bank digital currencies

At a meeting of finance chiefs on Wednesday, the nations will call for transparency and privacy protections as part of a common set of rules for the currencies, a draft document shows.
The Group of Seven industrialized nations will call for transparency and privacy protection as part of a common set of guiding principles created for central bank digital currencies, a draft document showed Monday.

The 13-point rules are expected to be endorsed during a meeting of finance chiefs in Washington on Wednesday, and approval would come at a time when China is taking the lead in the global race to launch a CBDC, which has sparked concerns the development could allow stronger surveillance of its economy and people.

While noting the issuance of such currencies is a “sovereign matter,” the document obtained by Kyodo News said that “by setting out a common set of principles, and underscoring the fundamental importance of shared values such as transparency, rule of law and sound economic governance, these principles can guide and inform exploration of retail CBDC in the G-7 and beyond.”

None of the G7 members — Britain, Canada, France, Germany, Italy, Japan and the United States, as well as the European Union — have so far decided to implement a CBDC.

Meanwhile, China is seen by far the closest of any major economy to launching a CBDC, with pilot programs to develop the digital yuan already under way.

According to the draft document, the G7 members will acknowledge the rapid rise in the use of digital payments and how this has transformed the way people and businesses carry out transactions, trends that have been “further accelerated” by the coronavirus pandemic, which has raised the need for contactless payments.

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.

“Where overseas access to a jurisdiction’s CBDC could leave other countries vulnerable to currency substitution or other spillovers, collaborative work to design and implement safeguards, particularly through relevant international organizations, can help mitigate negative effects,” it said.

In the case of a CBDC being used to provide international development assistance, the motivation should be transparent, the draft also said.

Other principles mentioned in the draft included a commitment to countering fraud and mitigating the risks of evading financial sanctions, as well as the creation of a resilient system through methods such as crisis simulation and playbook development.

The emphasis on transparency seems to reflect concerns that the rollout of a CBDC would empower the Chinese government through the collection of data on private financial transactions.

The Center for a New American Security, a think tank in Washington, has said in a report on China’s digital currency that a CBDC system “will likely enable the Chinese Communist Party to strengthen its digital authoritarianism domestically and export its influence and standard-setting abroad.”

China’s project “represents a significant risk to the long-held standards of financial privacy upheld in free societies,” the report, released in January, warned.

According to the International Monetary Fund, 110 countries have reached “some stage” of looking into CBDCs. The Bahamas was the first country to officially launch a CBDC.

Federal Reserve Chairman Jerome Powell said last month that the U.S. central bank is working to evaluate whether to issue a CBDC and that it intends to publish a “discussion paper soon” to seek feedback from lawmakers and the public.

The Bank of Japan, meanwhile, started an experiment earlier this year to check the basic functions of a CBDC.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Qatar Airways Clears Backlog of Passengers Following Missile Threats
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
×