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Wednesday , October 13th 2021

20:21 G7: Extensive use of CBDC by Foreign Residents May Lead to Loss of Currency Sovereignty of the Issuing Country

According to news on October 14th, the Group of Seven (G7) has established a set of common guiding principles for central bank digital currency (CBDC), which focuses on transparency and privacy protection. G7 believes that the issuance of CBDC is a sovereign issue and has adopted a set of common principles. , And emphasized that common values such as transparency, the rule of law, and a sound economy are very important, but so far, the G7 member states—the United Kingdom, Canada, France, Germany, Italy, Japan, and the United States—and the European Union have not decided to implement CBDC. According to relevant documents disclosed, the members of the Group of Seven countries admitted that the epidemic has promoted the rapid increase in the use of digital payments, but there are still problems such as proper national supervision and lack of supervision frameworks, as well as protection of user data privacy and strict accountability standards. G7 also specifically pointed out that if foreign residents use any CBDC in large quantities, it may result in the loss of currency sovereignty of the issuing country.