Central Bank Digital Currencies (CBDCs) should be provided with rules so that their functioning does not undermine the central banks’ mandate of conducting monetary policy and ensuring the stability of the financial system.
Representatives of the central banks of the G7 countries agreed on this at a joint meeting that took place in the middle of the week. Central bank digital currencies are not intended to replace existing forms of money such as cash, but are intended to complement them. At the same time, they are to serve as part of a secure payment system.
At the same time, the issuance of central bank digital currencies must not undermine the mandate of central banks, which is primarily to conduct monetary policy or ensure the stability of the financial system. It must also be transparent and in line with the rule of law and economic governance through monetary policy instruments.
The central banks of the world’s major economies have been working for some time to create their own digital currency, with which they want to modernize the financial system and make it more flexible, especially in an international context. The Chinese or Swedish central bank can be considered the global leader in the field of CBDC.
