G20 countries aim to establish common policy on the cryptocurrency market for better global regulation. The statements came from the meeting, which was held in Bengaluru on 13-15 December for the first time under the presidency of India.
G20 countries to create common cryptocurrency policy for global regulation
The G20 and central bank proxies met for the first time on December 13-15, under India’s presidency. India’s secretary of economic affairs, Ajay Seth, said at a news conference on Wednesday that the G20 countries aim to establish a common policy on cryptocurrencies for better global regulation. Pointing out that the effects of cryptocurrencies on the economy, monetary policy and banking sector should be examined in order to establish a common policy, Seth says:
The regulation should proceed from the policy opinion received. 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 sparked calls for better regulation of the crypto market. As you follow on Kriptokoin.com, FTX officially declared bankruptcy on November 11. Then, 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 after 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 then expand to include nine more cities across India.
Meanwhile, the Reserve Bank of India pointed out that transactions can be 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 in their mobile phones.
