CBDC, the guidelines for the issuance of central bank digital currencies will be established at the G7]

The G7 council made up of seven industrialized nations (Great Britain, Canada, France, Germany, Italy, Japan and the United States) is ready to issue guiding principles for issuing central bank digital currencies (CBDCs).

The guidelines will reportedly include 13 points, with a focus on transparency and privacy. The draft starts with the recognition of the growth of digital payments over the past two years and the growing popularity of cryptocurrencies in general. The draft also talks about the need to focus on user privacy and security and concerns that China's CBDC is a surveillance tool. The draft also states that, although the issue remains a sovereign decision of each member country, it is necessary to establish "a common set of principles and, underlining the fundamental importance of shared values such as transparency, the rule of law and a healthy economic governance, these principles can guide and inform the exploration of CBDC in the G7 and beyond ”.

The debate on CBDC has increased following China's progress in the field. The most populous state in the world is years ahead in implementing CBDC as it has not only completed the development of the digital yuan, but has been running pilot programs nationwide to test its various use cases for nearly two years.

Most nations around the world are working independently on CBDC development, but all are years behind China. Therefore, the G7's interest in CBDC could accelerate the development process and also help establish a common standard across nations that would aid in cross-border functionality.

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