London Daily

Focus on the big picture.
Thursday, Dec 04, 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
India backs down on plan to mandate government “Sanchar Saathi” app on all smartphones
King Charles Welcomes German President Steinmeier to UK in First State Visit by Berlin in 27 Years
UK Plans Major Cutback to Jury Trials as Crown Court Backlog Nears 80,000
UK Government to Significantly Limit Jury Trials in England and Wales
U.S. and U.K. Seal Drug-Pricing Deal: Britain Agrees to Pay More, U.S. Lifts Tariffs
UK Postpones Decision Yet Again on China’s Proposed Mega-Embassy in London
Head of UK Budget Watchdog Resigns After Premature Leak of Reeves’ Budget Report
Car-sharing giant Zipcar to exit UK market by end of 2025
Reports of Widespread Drone Deployment Raise Privacy and Security Questions in the UK
UK Signals Security Concerns Over China While Pursuing Stronger Trade Links
Google warns of AI “irrationality” just as Gemini 3 launch rattles markets
Top Consultancies Freeze Starting Salaries as AI Threatens ‘Pyramid’ Model
Macron Says Washington Pressuring EU to Delay Enforcement of Digital-Regulation Probes Against Meta, TikTok and X
UK’s DragonFire Laser Downs High-Speed Drones as £316m Deal Speeds Naval Deployment
UK Chancellor Rejects Claims She Misled Public on Fiscal Outlook Ahead of Budget
Starmer Defends Autumn Budget as Finance Chief Faces Accusations of Misleading Public Finances
EU Firms Struggle with 3,000-Hour Paperwork Load — While Automakers Fear De Facto 2030 Petrol Car Ban
White House launches ‘Hall of Shame’ site to publicly condemn media outlets for alleged bias
UK Budget’s New EV Mileage Tax Undercuts Case for Plug-In Hybrids
UK Government Launches National Inquiry into ‘Grooming Gangs’ After US Warning and Rising Public Outcry
Taylor Swift Extends U.K. Chart Reign as ‘The Fate of Ophelia’ Hits Six Weeks at No. 1
250 Still Missing in the Massive Fire, 94 Killed. One Day After the Disaster: Survivor Rescued on the 16th Floor
Trump: National Guard Soldier Who Was Shot in Washington Has Died; Second Soldier Fighting for His Life
UK Chancellor Reeves Defends Tax Rises as Essential to Reduce Child Poverty and Stabilise Public Finances
No Evidence Found for Claim That UK Schools Are Shifting to Teaching American English
European Powers Urge Israel to Halt West Bank Settler Violence Amid Surge in Attacks
"I Would Have Given Her a Kidney": She Lent Bezos’s Ex-Wife $1,000 — and Received Millions in Return
European States Approve First-ever Military-Grade Surveillance Network via ESA
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
UK Court Hears Challenge to Ban on Palestine Action as Critics Decry Heavy-Handed Measures
Investors Rush Into UK Gilts and Sterling After Budget Eases Fiscal Concerns
UK to Raise Online Betting Taxes by £1.1 Billion Under New Budget — Firms Warn of Fallout
Lamine Yamal? The ‘Heir to Messi’ Lost to Barcelona — and the Kingdom Is in a Frenzy
Warner Music Group Drops Suit Against Suno, Launches Licensed AI-Music Deal
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
UK Prime Minister Sir Keir Starmer Promises ‘Full-Time’ Education for All Children as School Attendance Slips
UK Extends Sugar Tax to Sweetened Milkshakes and Lattes in 2028 Health Push
UK Government Backs £49 Billion Plan for Heathrow Third Runway and Expansion
UK Gambling Firms Report £1bn Surge in Annual Profits as Pressure Mounts for Higher Betting Taxes
UK Shares Advance Ahead of Budget as Financials and Consumer Staples Lead Gains
Domino’s UK CEO Andrew Rennie Steps Down Amid Strategic Reset
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
×