The Group of Seven (G7) developed countries have scheduled a forthcoming roundtable discussion to debate and ascertain how developing countries can penetrate the crypto market rationally via the Central Bank Digital Currency (CBDC). The next G7 summit will be held in Hiroshima Japan where the deliberation will consider all factors to introduce the CBDC in economies that need altered development.
The Japanese vice minister of finance for international affairs, Masato Kanda confirmed the summit’s chief focus is altering underdeveloped and developing economies that intend to revive their economies with the crypto market. Kanda also said that the G7 summit for the year will mostly cover how the CBDC subject will be available for deliberation all through 2023 until a verdict is made on the best application.
“We have to address risks from the development of CBDCs by ensuring factors such as appropriate transparency and sound governance. As a priority of this year, the G7 will consider how best to help developing countries introduce CBDC consistent with appropriate standards, including the G7 public policy principle for retail CBDC.”
“Fast-moving digital technologies have provided tremendous benefits in many years, including cheaper and faster cross-border payments available to a larger public, but the new technologies have onset of challenges.” The Japanese fiscal diplomat confirmed that other countries despise the crypto market due to its uncertainty in stabilizing the economy since it has experienced value fluctuation overtime.
International regulatory affairs have reportedly consented to join forces to regulate the crypto market before diving behemoth resources to moderate the digital economy. This consideration has been portrayed by crypto giant company FTX that currently experienced bankruptcy due to the fluctuating trait tied with the cryptocurrencies.
The Japanese fiscal diplomat considers the FTX financial mishap that happened unexpectedly in the wake of the crypto market turmoil which serves as an edge to consider other factors vulnerable to the crypto market. However, Kanda is keen on attending the next IMF meeting to gather information about the cryptocurrency vulnerabilities paired with debts which are most inclined to African countries such as Ghana, Zambia, and Ethiopia.
Still, Kanda’s comments did not disclose if the G7 summit will focus on elevating African countries indebted to their economies and hoping for the crypto market as its saviour. Other countries like Sri Lanka seem ideal for the Japanese fiscal diplomat to work on as a test tool to experiment with the outcome of their deliberation on the forthcoming summit.