Responsible Digital Transformation for a G7-Led Global Payment System

Abstract

Digital assets and emerging payment technologies are challenging nations' financial governance capabilities, creating regulatory fragmentation among G7 jurisdictions and impeding efficient cooperation. To address technological changes and adapt to local policy approaches, this proposal seeks to harmonize regulatory strategies while preserving jurisdictional flexibility towards a G7-led global payment system. The recommended strategy combines immediate sector-specific alignment with a long-term vision for unified, adaptive governance, addressing urgent risks and systemic coherence. The G7-led initiative features a phased plan focusing on standardization, pilot sandbox testing, and establishing a governance mechanism for ongoing oversight and adaptability.