Arab Press

بالشعب و للشعب
Wednesday, Mar 11, 2026

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
Aramco Warns Global Oil Market Faces ‘Catastrophic’ Shock if Strait of Hormuz Remains Closed
Iran Launches Drone and Missile Attacks Across Gulf Targets Including Saudi Arabia, Kuwait and Bahrain
Saudi Arabia Elevates Fahad Al-Saif as Vision 2030 Enters Crucial Implementation Phase
Saudi Aramco Expands Routes to Move Oil Without Reliance on the Strait of Hormuz
Saudi Arabia and Pakistan Reaffirm Mutual Defense Cooperation Following Iran Strike
Saudi Arabia Plans Major Ukrainian Arms Deal to Counter Iranian Drone Threat
Pentagon Signals Intensification of U.S. Air Campaign as Iran Conflict Escalates
U.S. Senator Lindsey Graham Raises Prospect of Mutual Defense Pact With Saudi Arabia Amid Iran Conflict
Why Saudi Arabia Is Unlikely to Have Wanted U.S. Airstrikes on Iran
Saudi Arabia’s Red Sea Oil Exports Set to Reach Record High as Gulf Routes Face Disruption
Saudi Arabia Pushes East–West Oil Pipeline Toward Full Capacity as Hormuz Crisis Disrupts Global Energy Flows
Oil Prices Retreat From Peak as G7 Weighs Release of Strategic Reserves
Pentagon Identifies U.S. Soldier Who Died After Iranian Strike on Saudi Air Base
Why Saudi Arabia’s $50 Billion ‘The Line’ Megacity Slowed — and How Artificial Intelligence Is Reshaping the Plan
United States Withdraws Diplomatic Staff from Saudi Arabia and Southeast Turkey as Regional Conflict Escalates
Fanatics Moves Tom Brady Flag Football Showcase from Saudi Arabia to Los Angeles Amid Regional War
Saudi Arabia Seeks Strategic Support from Pakistan After Iranian Missile and Drone Attacks
Saudi Arabia Begins Oil Output Cuts as Hormuz Disruption Forces Storage Limits
Saudi Arabia Travel Advisory Tightened as Middle East War Triggers Regional Security Alerts
Saudi Arabia Warns Iran It Will Be ‘Biggest Loser’ as Drone Strikes Spread Across Gulf States
Lindsey Graham Urges Saudi Arabia to Join US Effort Against Iran as War Expands
Saudi Crown Prince Holds Strategic Calls With Spanish and Ukrainian Leaders Amid Regional Tensions
Kuwait’s Jazeera Airways Shifts Operations to Saudi Arabia Amid Regional Airspace Disruptions
Saudi Arabian Grand Prix: Why Jeddah’s Night Race Has Become One of Formula One’s Most Distinctive Events
F1 Leadership Addresses Bahrain and Saudi Arabia Races as Middle East Conflict Raises Safety Concerns
Zelenskyy Offers Saudi Crown Prince Assistance to Counter Iranian Drone Threat
Seventh U.S. Service Member Dies from Injuries After Iranian Strike in Saudi Arabia
Civilian Infrastructure Increasingly Hit as Iran Conflict Expands and Saudi Arabia Reports First Fatalities
Saudi Arabia Warns Iran to Halt Attacks and Signals Potential Retaliation
US Embassy in Riyadh Issues Security Alert Urging Americans to Shelter in Place Amid Regional Attacks
Projectile Strike on Saudi Residential Building Kills Two as Regional Conflict Expands
Saudi Arabia Warns Iran While Expanding Diplomatic Efforts to Contain Widening Middle East War
Iran’s President Rejects U.S. Surrender Demand as Drone and Missile Strikes Hit Gulf States
Saudi Arabia Intercepts Drone Swarm Targeting Strategic Shaybah Oil Field
Pakistan Faces Growing Pressure to Balance Ties With Iran and Saudi Arabia as Regional War Intensifies
Middle East Conflict Tests Mohammed bin Salman’s Vision to Transform Saudi Arabia Into a Global Hub
Proposed U.S.–Saudi Nuclear Deal Could Ease Traditional Nonproliferation Requirements
Iran Claims Strike on U.S.-Linked Oil Tanker Near Saudi Waters as Maritime Tensions Escalate
Saudi Arabia Says Air Defences Destroyed 23 Drones and Three Missiles Amid Escalating Regional Conflict
Saudi Arabia Warns Iran Against ‘Miscalculation’ After Missile and Drone Attacks Across Gulf
Iranian Missiles Intercepted Across Gulf as Air Defences Activate in Saudi Arabia, Qatar, UAE and Bahrain
U.S. Justice Department Pursues Criminal Cases Against Cuban Officials in New Legal Push
Abrupt Cancellation of U.S. Army Exercise Sparks Speculation Over Possible Middle East Deployment
Saudi Arabia Led OPEC Output Surge Ahead of Iran Strikes, Survey Finds
Cristiano Ronaldo Travels to Spain for Hamstring Treatment After Injury in Saudi Pro League Match
Saudi Aramco Reroutes Oil to Red Sea as Strait of Hormuz Disruptions Hit Gulf Exports
Saudi Arabia Presses Ahead With Economic Diversification Despite Fiscal and External Deficits
Middle East Conflict Puts Bahrain and Saudi Arabian Formula One Races at Risk
Iran Targets Israeli Diplomatic Site in Bahrain and US Air Base in Qatar as Regional Conflict Expands
Saudi Arabia Intercepts Three Ballistic Missiles Targeting Prince Sultan Air Base
×