G7 Countries Moving Towards Cryptocurrency: Changpeng Zhao

Japan's Central Bank Calls For Uniform Regulation Among G7 Countries

In April, the Bank of Japan (BOJ) issued a strong warning urging the G7 countries to establish an international unified regulatory architecture for regulating and supervising cryptocurrencies. According to the central bank, a framework for overseeing cryptocurrencies must be developed as soon as possible to prevent financial mishaps in the economy.

There has been an increase in debates about bitcoin transactions due to the ongoing battle between Ukraine and Russia. Also, the usage of cryptocurrency tokens to circumvent economic penalties and commit fraud has caught the interest of regulatory bodies. According to the Bank of Japan, the current laws are incapable of monitoring the role of cryptos in circumventing economic restrictions. 

G7 Countries Laydown Framework For CBDC 

During a meeting held in October last year, the G7 countries discussed the possibility of issuing a Central Bank Digital Currency. They agreed during the conference that any virtual currency released by a central bank must "promote and not damage" the bank's capacity to fulfill its mission on financial and monetary stability and that it must also satisfy stringent requirements.

Nationals from the G7 also agreed that the CBDC should function in tandem with physical cash, serving both as a secure asset and a payment system. Moreover, the currencies must be issued in a manner that does not conflict with the mandates of the central banks and that complies with strict transparency, privacy, and accountability criteria.

As the world moves toward a more economically open yet complicated system, there is a growing need to examine the role of cryptocurrencies and how to regulate the sector.