G7-Led International Financial Framework for Digital Governance

Abstract

International fragmentation risks leading to financial instability are paramount. The G7 should lead an interoperable, efficient and participative solution by setting up the International Financial Framework (IFF). The IFF leads the development of the International Digital Financial Architecture with tokenized central bank reserves and a Global Liquidity Pool as its core pillars. Prosperity Data Networks linked to the Architecture could further catalyze growth within underserved micro-, small- and medium enterprises globally. With a multi-year, phased implementation, the G7-led IFF would be extended to G20 and emerging economies to safeguard the international financial system and to make it future-proof tailored to the diverse needs of economies.