Masato Kanda explained that the crypto and CBDC discussions will be part of the G7 endeavours to address challenges the global community is facing from fast-developing digital technology

The Group of Seven (G7) countries will discuss tighter regulation on crypto currency and explore methods to assist developing countries in introducing central bank digital currencies (CBDCs) to ensure consistency with international standards, Reuters stated, citing Japan’s Vice Minister of Finance for International Affairs, Masato Kanda.

The members of the G7 group include Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. The European Union (EU) also takes part in the meetings of G7. Japan holds the Presidency of the G7 in 2023.

Kanda elucidated at a seminar in Washington Tuesday that the crypto and central bank digital currency discussions will be part of the G7 endeavours to address challenges the global community is facing from fast-developing digital technology. The vice finance minister emphasised that the failure of crypto exchange FTX in 2022 was an important wake-up call for policymakers to create regulation across borders.

The vice finance minister explained: There are a few different views among countries regarding crypto assets. But unanimity is certainly there that we need more regulation, especially following the FTX shock.

Kanda noted that while the fast innovation of digital technology has advantages, it has brought new challenges as well, such as cyber security, spread of misinformation, social and political divides, and the risk of undermining financial markets.

On the topic of CBDCs, he stated: As a priority of this year, the G7 will contemplate how best to assist developing nations introduce central bank digital currency in line with suitable standards, including the G7 public policy principle for retail central bank digital currency.

He stressed: We have to address risks from the development of central bank digital currency by ensuring factors like appropriate transparency and sound governance.