The Group of 7 (G7) members recently met in Japan to discuss central bank digital currencies (CBDCs) and crypto regulation. The main focus of the meeting was to implement the “Travel Rule” for crypto assets quickly. Here are the most important takeaways from the meeting:
1. The G7 members are concerned about the risks associated with CBDCs and cryptocurrencies, such as money laundering and terrorist financing. Therefore, they are exploring ways to regulate these digital assets to mitigate these risks.
2. The G7 members are also looking to implement the “Travel Rule” for crypto assets, which requires virtual asset service providers (VASPs) to share customer information with each other when conducting transactions. This is aimed at improving transparency and preventing illicit activities.
3. The G7 members are considering the development of their own CBDCs, but they are also exploring the possibility of collaborating with other countries on a global digital currency.
In summary, the G7 members are taking a proactive approach to regulating CBDCs and cryptocurrencies to prevent illicit activities. They are also looking to implement the “Travel Rule” for crypto assets quickly to improve transparency and prevent money laundering and terrorist financing. Finally, they are exploring the development of their own CBDCs and collaborating with other countries on a global digital currency.