G20 Summit to Craft Global Crypto Regulation Roadmap


At the G20 Leaders’ Summit in New Delhi later this week, the Financial Stability Board (FSB) and the International Monetary Fund (IMF) will provide a roadmap for regulating cryptocurrencies. India is aiming to create a consensus among G20 nations on the subject, and has put together a presidential note that includes a summary of the IMF and FSB reports.

The synthesis paper on crypto assets is intended to offer additional clarity to nations on how to incorporate virtual digital assets into their digital financial systems. However, G20 member states have yet to agree on a joint statement on the Russia-Ukraine war due to objections from Russia and China.

At the G20 Finance Ministers and Central Bank Governors meeting in Gandhinagar, Gujarat in July, China argued that geopolitical issues are not the right topics to discuss in this forum, while Russia dissociated itself from the status of the document. Nevertheless, the G20 is looking into the macroeconomic consequences of food and energy insecurity.

In addition, the grouping has finalized the debt vulnerability framework for restructuring the debts of Zambia, Ghana and Ethiopia. A similar framework for Sri Lanka is also close to being finalized, although China is opposing the move.

Regarding climate change, the G20 has prepared a report that outlines the macroeconomic risks it poses. It also contains pricing and non-pricing tools and approaches that countries can take to tackle climate change.

Lastly, the bloc is looking to increase the capabilities of multilateral development banks (MDBs) and their capital adequacy framework. The second part of a report on MDBs by N.K. Singh and Lawrence Summers, which will be released in October, is expected to suggest a road map, a new foreign currency hedging mechanism, system-wide collaboration, and a proposed global challenges funding mechanism.

The G20 Leaders’ meeting this week marks the end of a year-long process, with discussions held among ministers, senior officials and civil society on issues of global importance.

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