Taro Aso, Japan’s finance minister, has stated that he would address virtual currencies for central banks at the G7 conference on February 12. 

The event will be led by the Britain, and leaders from the biggest economies will formulate tactics to navigate the global financial crisis triggered by Covid-19. 

The G7 will start meeting on the CBDC issue 

Finance Minister Aso stated at a press conference that at the conference of G7 finance ministers and central bank leaders, he wanted to expand talks on digital taxation and central bank digital currencies, as per Reuters news.

The United States, Canada, France, Germany, Italy, Japan and the United Kingdom constitute the G7. The G7 decided on the need for control of digital currencies in December in the previous year. 

There is strong support across the G7 on the need to regulate digital currencies. This unanimous agreement to regulate crypto assets stems from their rising popularity. And the prohibition of their use in illicit activities. It came up after a discussion of ‘ongoing responses’ to “the evolving landscape of crypto assets and other digital assets and national authorities’ work to prevent their use for malign purposes and illicit activities.”

Last October, a statement reported that the CBDC could gain considerable efficiency and minimize volatility in the transactions sector of the G7. 

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G7 accepts payments via cryptocurrencies 

The G7 countries do agree that digital is the direction of finance. And they have jointly agreed to accept online transactions already. This is evident from the announcement by the US Treasury Department. Its beginning says:

The widespread adoption of digital payments has the potential to address frictions in existing payment systems by improving access to financial services, reducing inefficiencies, and lowering costs.”

However, this can just occur if the digital currencies used during transactions are completely controlled and monitored.  

The statement specifically points at the stablecoin market, the $25 billion sector consisting of fiat-collateralized virtual currencies privately distributed by crypto platforms such as Bitfinex, Binance, and others, from how it appears.

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