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June 28, 2022
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G7 summit: nothing directly about cryptocurrencies, but further printing of Fiats is almost certain –

The G7 Summit in Cornwall is now over. Effect? No cryptocurrency regulation issues have been resolved. Similarly, matters related to the digital currencies of the central bank (CBDC) were omitted. However, the seven largest economies in the world want to take up “Tax cooperation” and address ecological issues. We are also awaiting further global currency printing.

The G7 summit and its resolutions

The main provisions of the G7 summit can be summarized in the following points:

– pledge to supply one billion COVID-19 vaccines to poorer countries;
continuation of economic support programs “For as long as necessary”;
– a commitment to allocate $ 100 billion a year to help poorer countries in reducing carbon dioxide emissions and dealing with global warming;
– support for the holding of the Tokyo Olympic and Paralympic Games in 2021;
– demand that Russia take action against those carrying out cyber attacks;
– Russia’s call to “stop destabilizing behavior and malicious activities “, and to investigate the use of chemical weapons on Russian soil;
– requesting China to fully and thoroughly investigate the origin of the coronavirus that has spread from this country to the whole world;
– to urge China to maintain Hong Kong’s high degree of autonomy and to highlight human rights violations in Xinjiang;
– call for an immediate end to hostilities in the Ethiopian region of Tigray.

We are interested in the issues that we have deliberately “highlighted” in the above text.


One by one, however. First, a brief reminder.

G7 (Group of Seven; in the years 1975–1976 – G6; 1997–2014 – G8) is not an organization, but a group of seven countries, which are among the most important in the world in terms of economy. In practice, these are currently: France, Japan, Germany, the United States, Great Britain, Italy (G6, since 1975) and Canada (G7, since 1976).

Heads of states as well as the President of the European Council and the President of the European Commission (as representatives of the European Union) meet every year at political and economic summits. This year’s summit is the first personal meeting of world leaders since the beginning of the coronavirus pandemic. It was attended by the leaders of all seven countries, as well as political leaders from countries such as South Korea, South Africa, India and Australia.


In an official communiqué, the G7 countries undertook to create “Fairer global tax system.”

We will work together to ensure the future boundaries of the global economy and society, from cyberspace to outer space, increase the prosperity and well-being of all, while preserving our values ​​as open societies

– written in the document.

Leaders agreed on one thing: Target individuals and entities that avoid paying taxes. Ideas for a fight will probably be different. For example, the administration of US President Joe Biden has proposed the creation of a data exchange system to help catch tax evaders. It can also hit those people who are trying to avoid having to pay taxes with cryptocurrencies.

It is worth adding, however, that there was no direct mention of cryptocurrencies in the announcement.

Green energy

Another issue that may concern cryptocurrencies is the aspect of renewable energy.

At the heart of our program for economic growth and recovery is a green and digital transformation that will increase productivity, (…) reduce greenhouse gas emissions, improve our resilience and protect people and the planet (…)

– it was written in the document and it was added that the G7 goals in this field are to be achieved by 2050 at the latest.

We commit now to ending new direct government support to unflagging international coal-fired power generation, including through official development aid, export financing, investment, and financial support and trade promotion

– said the G7 leaders, confirming that they will strive to eliminate ineffective fossil fuel subsidies by 2025 and call on all countries in the world to join them in the context of opting for renewable energy. In this context, however, the lack of China among the G7 may be a problem.

The European Union has already announced its plans for the so-called border carbon tax, i.e. the border levy, which is to level the chances of EU producers burdened with ever higher climate service costs and companies from other countries where the fees for CO2 emissions are much lower. In practice, this is to reduce the risk of some industries leaving Europe. However, the introduction of the fee will hit the hardest for goods from developing countries, but also from China and Russia.

It is possible that such environmental provisions could in some sense hit Bitcoin mining or … strengthen Ether, which will soon be Proof-of-Stake mined.

There is also the other side of the coin. It is possible that greater promotion and support for RES will make Bitcoins mined more often with cheaper electricity. This will increase the profitability of digging.

Keep pumping up the markets?

It is also worth paying attention to the idea of ​​continuing economic support programs.

The post-summit communiqué stated that G7 leaders committed to continuing economic support programs in addition to “As long as it is necessary”, but – as has also been added – to avoid past mistakes when they were limited or terminated too early.

In practice, these plans would include job creation, investment in infrastructure, and fostering innovation and people. “This was not the case with previous global crises and we are determined it will be different this time “ – was written in the press release.

This most likely means further printing of currencies. For cryptocurrencies, this is great news. For people saving and earning in fiat currencies – terrible.

The boom on Bitcoin has already been linked to stimulus programs by, among others, NexusHash, Polish investor and analyst, blog creator Crypto-trader.pl. He recently wrote on his website:

Everything indicates that the 3-month distribution on the cryptocurrency market has come to an end and it is time for a several-month correction. The gains were largely powered by American money from the US central bank’s stimulus package. Of the astronomical amount of $ 1,900 billion, a large proportion went to traditional stock markets, which hit new heights every few days. Other countries, just to shake off the lace, behaved very similarly.

As announced by the G7 countries, programs of this type are to be continued or reactivated. Of course, creating jobs, investing in infrastructure, promoting innovation and supporting people will, of course, be done with public money that will have to be ‘printed’.

From the perspective of an investor from the “broader” market, the increasingly strong reversion of politicians to Keynesianism may be disturbing. Many free-market economists point out that government interference in the US economy during the Great Depression (at the turn of the 1920s and 1930s) only exacerbated the problems of the superpower. It only turned out for good during World War II. This means that pumping out economies with empty currencies may end in a protracted recession and possibly high inflation. Cryptocurrencies – we will emphasize this again – can benefit from it. Other sectors of the economy and “ordinary” citizens – ultimately lose.

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