Journalists of Yahoo Japan have received information about ongoing active discussions between the finance ministers and central banks of the G20 countries on the topic of sovereign cryptocurrencies (CBDC). The current working meetings between the financial institutions should prepare the substantive discussion of the issue for the G20 leaders’ summit in October this year.
CBDCs represent a new stage in the evolution of money, which will take the place or at least coexist with the paper money and coins.
Stimulus of the use of sovereign cryptocurrencies by the populace can be a guarantee that central banks won’t be able to track digital transactions and pinpoint them with personal data. This can be done by introducing public blockchain networks, however, in this case, the question about money-laundering remains open.
The introduction of technologies with open source gives the citizens freedom of transnational operations and transfers. But this also can simplify the funding of international terrorism, tax evasion, and other crimes in the financial sphere. This is a common problem for all countries, regardless of their plans or stage of CBDC development.
China stands closer than anybody to the launch of its sovereign cryptocurrency. Digital yuan went through all the stages of testing by the end of 2019, but the authorities of the country still haven’t named a date for the renovation of the financial system. Japan on its end, sees no point in transition to cryptocurrency without offline solutions. According to the authorities in Tokyo, only around 68% of people in the country have smartphones without which it is impossible to engage in transactions.
