The Group of Seven developed economies announced on Wednesday that each digital currency regulated by a central bank should "support and do no harm" to the institution's capacity to achieve its mandate on capital and financial stability, and need to also satisfy strict standards.
The G7 nations disclosed in a meeting on Wednesday that if released, a central bank digital currency (CBDC) must supplement cash and should act like a liquid, secure settlement asset and support for the payments system.
Still, the currencies should be released in a way that does not affect the central banks' authority, and fulfill strict standards of accountability, privacy, and transparency for the safety of user data, they added.
"Any central bank digital currency (CBDC) should be grounded in long-standing public commitments to transparency, rule of law, and sound economic governance," the G7 finance leaders announced in a statement.
While central bank digital currencies could support cross-border transactions, the G7 countries announced they have a "shared responsibility to minimize harmful spillovers to the international monetary and financial system."
International central banks have intensified efforts to establish their own digital currencies to update financial systems and expedite local and international payments.
China has been at the forefront toward launching a digital currency, while G7 central banks have been working to create universal regulations toward rolling out CBDCs as some advance with experiments.