Through a meeting, G7 concluded that implementation of the Central Bank Digital Currency will not harm the monetary policies and standards of the central banks.
In the present time, Central Bank Digital Currency (CBDCs) is a big need to bring advancement in the payment system. But for a long time, regulators and some financial experts raised questions and claimed that CBDCs have better potential & ability but have many financial stability risks. But the recent G7 meeting confirmed that there are no risks.
On 13 October, Canada, France, Germany, Italy, Japan, the U.K., and the U.S discussed the CBDCs under G7 meeting, discussed CBDCs implementation risks.
Through the discussion, they figured out that CBDCs will not disturb 13 main principle policies of the Central Banks. And also CBDCs will not harm Central banks financial stability.
“Strong international coordination and cooperation on these issues helps to ensure that public and private sector innovation will deliver domestic and cross-border benefits while being safe for users and the wider financial system.”
Further they emphasized that implementation of CBDCs will act as cash & liquid and that can be implemented in the existing systems to bring the payments settlement easily.
According to the G7 meet-up, Central Bank Digital Currency will bring huge efficiency in the remittances like cross border transactions and real time payment options.
Participants in the G7 meet-up confirmed that they will try to work on minimizing the “harmful spillovers to the international monetary and financial system.”
Recently, It has been that many Central Banks are trying their best to study in the CBDCs. In the latest, the US is skeptical about their plan to go with CBDCs to introduce digital US dollar.