The G7 published (14 October) a set of Public Policy Principles for Retail Central Bank Digital Currencies (CBDC) alongside a G7 Finance Ministers and Central Bank Governors’ Statement on CBDCs and digital payments.
CBDCs could be a digital form of central bank money that could be used alongside physical notes and coins.
The decision on whether to launch a CBDC is for each country to make, and no G7 jurisdiction has yet made this choice. It raises important questions about the way in which people interact with money and payments.
The report covers a range of important matters such as financial stability, operational resilience and cyber security, energy efficiency, privacy, inclusion and tackling illicit finance. These factors should all be considered when designing and potentially delivering a CBDC that would be fit for the future.