G7 to Discuss CBDC and Digital Taxation This Week

The G7 will begin its meeting on the subject of central bank digital currencies (CBDC), before moving to digital taxation and accelerating global debt.

February 9, 2021 | AtoZ Markets – Japan’s Finance Minister Taro Aso has announced that he will discuss central bank digital currencies at the G7 meeting on February 12.

The meeting will be chaired by Britain, with representatives from the world’s largest economies set to discuss strategies for navigating their way out of the global economic crisis caused by the covid-19.

G7 will begin meeting on the subject of CBDC

Finance Minister Aso said at a press conference that he needed to deepen discussions on digital taxation and central bank digital currencies at the G7 Finance Ministers and Central Bank Governors’ meeting, according to Reuters reports.

The G7 consists of the United States, Canada, France, Germany, Italy, Japan, and the United Kingdom. The G7 agreed in December last year on the need for digital currency regulation.

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.”

A statement last October stated that the CBDC could achieve significant efficiency and reduce friction in the G7’s payments sector.

G7 supports cryptocurrency payments

The G7 nations do believe that the future of finance is digital. And they have already mutually agreed to support digital payments. This becomes clear from the US Treasury Department’s statement, whose opening reads:

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.

But this can only happen if the crypto assets used for payments are “appropriately supervised and regulated.”

From what it seems, the argument clearly points fingers at the stablecoin ecosystem – the $25 billion market that consists of fiat-collateralized digital currencies privately issued by crypto exchanges like Bitfinex, Binance, and others.

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