Japan’s finance minister urges G7 to discuss policy measures regarding CBDCs

The Japanese finance minister urged the G7 to discuss central bank digital currencies (CBDCs) at the upcoming talks on Friday

Japan’s finance minister Taro Aso noted that the G7 needed to discuss the issue of CBDCs at the upcoming meeting on Friday. The G7 meeting will be held virtually and it will be the first time the US President Joe Biden will be attending since he was sworn less than a month ago.

Taro Aso suggested yesterday that the G7 finance ministers should focus on central bank digital currencies when they meet in two days. Aso said this in a press conference yesterday, reiterating that it is essential for the countries to discuss policy measures regarding CBDCs.

The meetings are attended by officials from member states, including Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. The officials discuss various topics, including global economic governance, international security and energy policy.

The G7 virtual meeting comes at a time when several central banks globally are either developing their CBDCs or actively researching them. The rise of cryptocurrencies and stablecoins have pushed apex banks to innovate and find ways for fiat currencies to remain relevant.

The People’s Bank of China remains one of the most advanced central banks in terms of CBDC development as it is set to begin live-testing the Digital Yuan.

Cryptocurrency has been a hot topic of discussion amongst the G7 members over the past few meetings. In December’s meeting, the G7 finance ministers talked about the need to regulate digital currencies as they gain traction globally.

Last year, the attendees talked about the appropriate responses to the ever-changing nature of cryptocurrencies and other digital currencies. They aim to prevent the use of cryptocurrencies for illegal purposes.

The ever-changing nature of the cryptocurrency market is one of the critical reasons regulators find it hard to provide policies that would guide the emerging sector. Most regulators have little knowledge of cryptocurrencies, making it even harder to roll out policies that would promote innovation instead of stifling it.

The virtual G7 meeting will be held on Friday ahead of the official summer G7 gathering later this year.