The G7 agree on the importance of digital currencies

October 14, 2021

The G7 members agreed on the importance of digital money and payments as a future priority in the financial and banking industry around the world.

The group said in a statement late Wednesday after a meeting on the sidelines of the fall meetings of the International Monetary Fund in the American capital, Washington.

It has laid down provisions that outline the general policy for the issuance of digital currencies by central banks.

The group presented a guide on monitoring digital currencies for central banks, consisting of a set of principles to ensure the transparency of financial activities related to these currencies and to protect the confidentiality of its participants.

It stated that one of the most important conditions required when central banks issue digital currencies is that these currencies, the method of issuance and their dealings with transparency, and their subordination to the law.

The guide notes that the decision to issue digital currencies is a “sovereign matter” for each country.

But the guide “establishes a common set of principles, and stresses the fundamental importance of universal values such as transparency, the rule of law, and sound economic management.

One of the principles contained in the manual is to combat fraud and reduce the risk of evading financial penalties, and the manual reminds governments of the need to make the payment system sustainable.

According to the International Monetary Fund, 110 countries are considering implementing a digital currency issuance process, while the Bahamas became the first country to officially launch central bank digital currencies.

The group includes 7 industrialized countries in the world, formerly called “G8” and includes member states in addition to Russia, which was excluded after its seizure of Crimea from Ukraine.

The group includes the United States, Britain, Germany, Canada, Japan, France, and Italy, which make up 40 percent of the world’s gross domestic product and inhabit 10 percent of the world’s population.