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The G7 published a set of public policy principles for retail central bank digital currency (CBDC) alongside a G7 Finance Ministers and Central Bank Governors' Statement on CBDCs and digital payments.

Japanese authorities have set up a working group to discuss the impact Facebook's proposed Libra digital coin could have on monetary policy and financial regulation, government sources said, ahead of a G7 finance leaders' gathering where the topic will be high on the agenda.

G7 Finance Ministers and Central Bank Governors remain focused on central bank digital currency (CBDC) and global stablcoins.

France is creating a G7 task force to study how central banks ensure cryptocurrencies like Facebook's Libra are governed by regulations. Governor Francois Villeroy de Galhau said the task force would be led by Benoit Coeure, a ECB board member.

The Libra Association is pleased that the G7 Working Group report, 'Investigating the Impact of Global Stablecoins (GSCs),' recognizes the potential to improve access to fast, secure and inexpensive payment technology.

The Group of Seven (G7) industrialized nations are reportedly discussing a draft document that sets out standards for the creation and issuance of central bank digital currency (CBDC). Among issues considered "essential" for any CBDC, the document cited appropriate national regulatory and oversight frameworks for the new payment system, as well as "rigorous" standards of privacy and accountability for the protection of users' data and transparency on how information will be secured and used. The paper also pointed to concerns over a significant use of any CBDC by residents of a foreign country, which could lead to currency substitution and loss of monetary sovereignty in both the issuing and foreign country.

G7 Finance Ministers and Central Bank Governors have issued a statement that, among other things, highlighted the opportunities and implications of central bank digital currencies (CBDCs) and their potential role in future payment transactions. "[It encouraged] jurisdictions exploring CBDCs to examine the international dimensions of CBDCs, in particular their cross-border use. CBDCs with cross-border functionality may have the potential to spur innovation and open up new ways to meet users' demand for more efficient international payments, but continued international cooperation will be important to understanding and minimizing any negative spillovers to the international monetary and financial system."

Stablecoins such as Facebook's Libra will need to be tightly regulated or they could destabilise the global economy and risk being used for money-laundering and the financing of terrorism, according to a working group consisting of senior officials from the G7 central banks as well as the International Monetary Fund, the Bank for International Settlements and the Financial Stability Board.

A report published on Thursday by the G7 warned that stablecoins that reach a global scale could "undermine competition in financial markets", as well as threaten financial stability and monetary policy. 

The Group of Seven (G-7) has signaled its commitment to implementing the forthcoming Financial Stability Board (FSB) crypto-asset regulatory norms and IMF central bank digital currency (CBDC) recommendations. The FSB is expected to finalize its high-level crypto-asset recommendations by July 2023. The first installments of the IMF  "Retail CBDC Handbook", to be produced in close cooperation with and drawing from the inputs of experts and stakeholders including other international organizations, standard setters and national authorities, will be published by the October 2023 IMF/World Bank Annual Meetings. https://www.consilium.europa.eu/media/64307/g7-communique-20230513.pdf

The G7 is preparing a communique that will detail plans for a working group to investigate the financial stability implications of stablecoins. It will include central banks and the IMF, under the leadership of the ECB's Benoît Cœuré.

"This G7 report lays out initial recommendations for both private sector stablecoin developers and public sector authorities to address the challenges and risks. Finally, the report suggests that authorities could develop road maps for improving the efficiency and lowering the cost of payments and financial services."

A Member of the Forum presented on potential business models for Payment Interface Providers (PIPs) in a CBDC ecosystem. The presentation set out that PIPs would likely undertake activities suggested in the Bank's 2020 Discussion Paper on CBDC such as onboarding clients, conducting KYC (Know Your Costumer) and AML (Anti Money Laundering) checks, authenticating users and providing consumer protection and overlay services, among others. The presentation then laid out a set of costs that such a PIP would likely incur in offering those services. A second Member presented a view on how the private sector could collaborate with policymakers to deliver on some of the G7 Principles on CBDC (published in October 2021).