Voltage source converters have become the main enabler for the integration of distributed energy resources in microgrids. In the case of islanded operation, these devices normally set the amplitude and frequency of the network voltage by means of a cascade controller composed of an outer voltage control loop and an inner current control loop. Several strategies to compute the gains of both control loops have been proposed in the literature in order to obtain a fast and decoupled response of the voltages at the point of common coupling. This paper proposes an alternative and simple methodology based on the introduction of a virtual conductance in the classic cascade control. This strategy allows to design each control loop independently, obtaining a closed-loop response of a first-order system. In this way, the gains of each control loop are easily derived from the parameters of the LC coupling filter and the desired closed-loop time constants. Furthermore, a state observer is included in the controller to estimate the inductor current of the LC filter in order to reduce the number of required measurements. A laboratory testbed is used to validate and compare the proposed controller. The experimental results demonstrate the effectiveness of the proposal both in steady-state and transient regimes.