The Group of Seven (G7) member countries convened in Niigata, Japan to hold discussions on central bank digital currencies (CBDCs) and regulations surrounding cryptocurrency transfers. A key focus was the swift implementation of the “Travel Rule” for crypto assets.
In their joint statement summarizing the talks, the committee expressed its support for the development of CBDCs, highlighting the need for transparency, adherence to the rule of law, sound economic governance, cyber security, and data protection. They welcomed the International Monetary Fund’s (IMF) efforts in creating a “CBDC Handbook” and looked forward to the initial deliverables to be published during the World Bank Group and IMF Annual Meetings in Marrakesh, Morocco, scheduled for October 15.
Furthermore, the committee addressed the controversial “Travel Rule,” which mandates financial institutions to disclose the sender’s name, address, and account details for cryptocurrency transactions exceeding $3,000. The G7 committee voiced its support for the Financial Action Task Force (FATF) in expediting the global implementation of FATF Standards for virtual assets, including the “travel rule.” They also acknowledged the FATF’s work on emerging risks from decentralized finance (DeFi) arrangements and peer-to-peer transactions.
The G7 committee consists of representatives from Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, with the European Union serving as a non-enumerated member. The Niigata meeting served as a precursor to the annual G7 summit, set to occur in Hiroshima from May 19 to 21.
While it remains uncertain whether U.S. President Joe Biden will attend the summit due to the ongoing debt ceiling impasse in Congress, the Financial Times reported that the U.S. aims to rally its wealthy nation partners to exert economic pressure on China during the event.
Notably, while Ukraine received 17 mentions in the communique of the Niigata meeting (with Russia receiving 18), China was not mentioned at all.