G20 countries aim to build political consensus on crypto assets for better global regulation. “After the cryptocurrency crash we have seen recently, it is clear that we need internationally agreed regulatory standards,” said International Monetary Fund (IMF) Deputy Managing Director Gita Gopinath.
G20 nations discuss cryptocurrency regulation
G20 finance and central bank lawmakers met for the first time under the Indian presidency from December 13 to 15 in Bangalore.
Ajay Seth, India’s economic affairs secretary, said at a press conference on Wednesday that the G20 nations aim to build a political consensus on crypto assets for better global regulation. Noting that the implications of crypto assets for the economy, monetary policy and the banking sector should be studied for consensus building, Seth was quoted by Reuters as saying:
The regulation should result from the political point of view adopted. Indeed, one of the priorities that has been put on the table is to help countries build consensus for the political approach to cryptocurrencies.
The collapse of cryptocurrency exchange FTX has led to calls for better oversight of the cryptocurrency market. FTX filed for bankruptcy in the US on Nov. 11, and former CEO Sam Bankman-Fried (SBF) was arrested this week. The US government and regulators have filed several fraud charges against FTX and Bankman-Fried.
Group of 20 (G20) members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom, United States and European Union. The group accounts for about 85% of world GDP.
Gita Gopinath of the IMF on globally agreed cryptographic standards
International Monetary Fund (IMF) deputy managing director Gita Gopinath said on Thursday that the G20 under Indian presidency can make progress in three areas: debt management, cryptocurrency regulation and climate finance. Gopinath is currently in India to attend G20 meetings.
He explained that globally agreed standards are needed for cryptocurrency regulations, elaborating:
After the cryptocurrency crash we have seen recently, it is clear that we need internationally agreed regulatory standards. Progress on that front being able to achieve it by 2023 would be a concrete result.
Seth also said on Wednesday that one of the key agendas the G20 will discuss is the global use of central bank digital currencies (CBDCs). India’s central bank, the Reserve Bank of India (RBI), has launched both wholesale and retail digital rupee pilots.
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