Crypto Policy Slated For Discussions At G7 Hiroshima

This year's G7 Summit, which will be held at Hiroshima, Japan, is set to discuss policy for crypto and digital assets, with a focus on the standards for global implementation of central bank digital currencies (CBDCs).

According to a report from Reuters, the consensus among G7 members (Japan, Italy, Canada, France, US, UK, Germany and the European Union) is leaning towards stronger regulation for cryptocurrencies and digital assets. The summit is also slated to address debt vulnerabilities in middle-income countries in relation to the crypto industry.

The G7 (Group of Seven) is an influential annual gathering of leaders from different nations with leading economies. Established in 1975, the summit has shaped policymaking in the decades since its inception.

Given the rapid evolution of the crypto industry and its expanding sectors, the G7's involvement in developing cohesive regulatory frameworks, a global consensus formed by major economic powers will play an important role in what is to come in the crypto space.

Japan's vice finance minister for international affairs Masato Kanda shared some insight on the summit's prospectus:

"We have to address risks from the development of CBDC 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."

In recent years, the G7 has taken an active role in shaping global policy for crypto regulation. With the proliferation of digital assets and the rise of central bank digital currencies, governments around the world continue to struggle with the vast implications of crypto to their respective economies and financial systems. Financial stability, consumer protection, and a comprehensive framework for fraud prevention at an international level are expected to be discussed during the summit.

The Japanese finance minister also mentioned how the collapse of FTX constituted a "serious wake-up call" for policymakers to create cross-border regulatory frameworks.

"For crypto assets, there are a bit of diverging views among countries. But consensus is definitely that we need more regulation, particularly after the FTX shock," Kanda stated.

Kanda says that the development of digital technologies has its benefits, but that given these same factors, new challenges for informaton security, misinformation, as well as social and political factions arise. As a result of these factors, the destabilization of financial markets is identified as a risk.

Japan, the elected chair for this year's summit, recently published a whitepaper on Web3 and crypto adoption.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.