G20 countries aim to create a common policy on the cryptocurrency market for more adequate global regulation. The statements came from the first meeting under the presidency of India, held in Bengaluru on 13-15 December.
G20 countries will create a common cryptocurrency policy for global regulation
The G20 and central bank proxies came together on December 13-15 for the first time under India’s presidency. India’s secretary of economic affairs, Ajay Seth, said at a press conference on Wednesday that the G20 countries aim to create a common policy on cryptocurrencies for better global regulation. Seth pointed out that the effects of cryptocurrencies on the economy, monetary policy and banking sector should be examined in order to establish a common policy.
The regulation should be based on the policy view taken. In fact, one of the priorities on the table is to help countries build a consensus for a policy approach to cryptocurrencies.
The collapse of crypto exchange FTX has led to invitations for better regulation of the crypto market. FTX officially declared bankruptcy on November 11. Subsequently, in December, former CEO Sam Bankman-Fried (SBF) was arrested. The US government and regulators brought several fraud charges against FTX and Bankman-Fried.
IMF deputy director’s thoughts on global crypto standards
Gita Gopinath, deputy director general of the International Monetary Fund (IMF), said on Thursday that the India-led G20 can make progress in three areas:
- debt management
- crypto regulation
- Climate finance
Gopinath says that globally accepted norms are required for crypto regulations. In his statements, he included the regulatory stance following the bankruptcies in November:
After the crypto meltdown we’ve seen recently, it’s clear that we need internationally accepted standards for regulation. Progress on this front, achieving it by 2023 will be a tangible result.
India launches its applications for CBDCs
Seth also said on Wednesday that one of the main agendas the G20 will discuss is the global use of CBDCs. CBDCs are cryptocurrencies backed by central bank banks. India’s central bank, the Reserve Bank of India, had launched both wholesale and individual digital rupees. The pilot scheme, which started on 1 December, is being implemented in four cities. It will subsequently expand to include nine more cities across India.
In this midst, the Reserve Bank of India pointed out that processes can be either person-to-person (P2P) or person-to-person. In the statements, it was stated that banks can make transactions with rupees through the digital wallet stored on their mobile phones.