Japan is taking a pro-crypto stance and is set to make Central Bank Digital Currencies (CBDCs) and cross-border regulation of Cryptocurrencies a core part of this year's G7 meetings as it presides over them. Masato Kanda, Vice Finance Minister of International Affairs of Japan, shed light on Japan's intentions during a seminar at the Peterson Institute for International Economics. He said that G7 nations want to help developing countries join the digitalization race through their own CBDCs, helping to ensure that these countries meet the criteria established by G7's central banks for using CBDCs.

However, Kanda also mentioned the importance of making sure digital systems would not compromise global financial stability. He said Cryptocurrencies have uniquely enabled cross-border transactions –making the global financial network more accessible than ever –while at the same time bringing forth risks that need to be tackled. The FTX incident of 2022 acted as a wake-up call that a stronger regulation of Cryptocurrencies on a global scale was required, something G7 members all seemed to agree on, stated Kanda. He also proposed that the Financial Stability Board act as the regulatory body dealing with Crypto across borders.

Japan is making sure this G7 meeting pays special attention to digital money and encourages a wider adoption of Cryptocurrencies, as recently shown in their white paper. Other G7 members may or may not follow Japan's example, but the key focus on CBDCs and Crypto will surely expand the area of use of digital assets.



Other News from Today