London Daily

Focus on the big picture.
Thursday, Jul 31, 2025

G7 to set out guiding principles on central bank digital currencies

G7 to set out guiding principles on central bank digital currencies

At a meeting of finance chiefs on Wednesday, the nations will call for transparency and privacy protections as part of a common set of rules for the currencies, a draft document shows.
The Group of Seven industrialized nations will call for transparency and privacy protection as part of a common set of guiding principles created for central bank digital currencies, a draft document showed Monday.

The 13-point rules are expected to be endorsed during a meeting of finance chiefs in Washington on Wednesday, and approval would come at a time when China is taking the lead in the global race to launch a CBDC, which has sparked concerns the development could allow stronger surveillance of its economy and people.

While noting the issuance of such currencies is a “sovereign matter,” the document obtained by Kyodo News said that “by setting out a common set of principles, and underscoring the fundamental importance of shared values such as transparency, rule of law and sound economic governance, these principles can guide and inform exploration of retail CBDC in the G-7 and beyond.”

None of the G7 members — Britain, Canada, France, Germany, Italy, Japan and the United States, as well as the European Union — have so far decided to implement a CBDC.

Meanwhile, China is seen by far the closest of any major economy to launching a CBDC, with pilot programs to develop the digital yuan already under way.

According to the draft document, the G7 members will acknowledge the rapid rise in the use of digital payments and how this has transformed the way people and businesses carry out transactions, trends that have been “further accelerated” by the coronavirus pandemic, which has raised the need for contactless payments.

Among issues considered “essential” for any CBDC, the document cited appropriate national regulatory and oversight frameworks for the new payment system, as well as “rigorous” standards of privacy and accountability for the protection of users’ data and transparency on how information will be secured and used.

The paper also pointed to concerns over a significant use of any CBDC by residents of a foreign country, which could lead to currency substitution and loss of monetary sovereignty in both the issuing and foreign country.

“Where overseas access to a jurisdiction’s CBDC could leave other countries vulnerable to currency substitution or other spillovers, collaborative work to design and implement safeguards, particularly through relevant international organizations, can help mitigate negative effects,” it said.

In the case of a CBDC being used to provide international development assistance, the motivation should be transparent, the draft also said.

Other principles mentioned in the draft included a commitment to countering fraud and mitigating the risks of evading financial sanctions, as well as the creation of a resilient system through methods such as crisis simulation and playbook development.

The emphasis on transparency seems to reflect concerns that the rollout of a CBDC would empower the Chinese government through the collection of data on private financial transactions.

The Center for a New American Security, a think tank in Washington, has said in a report on China’s digital currency that a CBDC system “will likely enable the Chinese Communist Party to strengthen its digital authoritarianism domestically and export its influence and standard-setting abroad.”

China’s project “represents a significant risk to the long-held standards of financial privacy upheld in free societies,” the report, released in January, warned.

According to the International Monetary Fund, 110 countries have reached “some stage” of looking into CBDCs. The Bahamas was the first country to officially launch a CBDC.

Federal Reserve Chairman Jerome Powell said last month that the U.S. central bank is working to evaluate whether to issue a CBDC and that it intends to publish a “discussion paper soon” to seek feedback from lawmakers and the public.

The Bank of Japan, meanwhile, started an experiment earlier this year to check the basic functions of a CBDC.
Newsletter

Related Articles

0:00
0:00
Close
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
×