G7 Committee Shows Support to Controversial Crypto “Travel Rule” and CBDC

During the meeting, the G7 committee highlighted that it supports all Financial Action Task Force (FATF) initiatives.

The International Group of Seven (G7) committee recently hosted a meeting in Japan, discussing the global financial implications of central bank digital currencies (CBDCs) and regulations for transferring cryptocurrency assets, with a focus on the controversial “Travel Rule.”

The committee opened up the meeting by expressing support for CBDCs development, emphasizing the need for further research to ensure these currencies adhere to “transparency, the rule of law, sound economic governance, cybersecurity, and data protection.”

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The International Monetary Fund’s (IMF) work on a “CBDC Handbook” was applauded, with the committee eagerly anticipating the first set of deliverables published by the 2023 World Bank Group and IMF Annual Meetings in Marrakesh, Morocco, on October 15th.

During the meeting, the committee also discussed the crypto “Travel Rules,” which mandate financial institutions handling cryptocurrency transactions over $3,000 to reveal the sender’s name, address, and account information.

The G7 committee expressed its support for “Travel Rule” and other Financial Action Task Force (FATF) initiatives.

We support initiatives by the Financial Action Task Force (FATF) on accelerating global implementation of the FATF Standards on virtual assets, including the ‘travel rule’, and its work on emerging risks, including from DeFi arrangements and peer-to-peer transactions.

The G7 committee, comprising representatives from Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, along with the European Union as a “non-enumerated” member, met in Niigata before the annual G7 summit, set to occur in Hiroshima from May 19th to 21st.

Although it remains uncertain if US President Joe Biden will attend due to the ongoing debt ceiling impasse, the Financial Times noted that the US aims to have its wealthy nation allies “increase economic pressure on China” during the summit.

Intriguingly, China went unmentioned in the meeting’s communique, while Ukraine and Russia received 17 and 18 mentions, respectively.

It is worth noting that the news about the G7 meeting broke at the end of March.