The initiative follows the launch of a roadmap proposed in a synthesis paper by the IMF and FSB, which aims to promote international policies and regulations for crypto assets.
With the increasing participation of investors in the crypto market, the G20 Group of Finance Ministers and Central Bank Governors (FMCBG) has agreed to work on a common roadmap to address the challenges associated with it. crypto market,
The roadmap was introduced through a collaborative synthesis paper by the International Monetary Fund (IMF) and the Financial Stability Board (FSB). This synthesis paper outlines an overall strategy aimed at promoting international policies and regulations for crypto assets.
This emphasizes the need to address the specific impacts of these assets on emerging markets and developing economies (EMDEs). The document places its emphasis on five main areas, including aggregating policy frameworks, expanding efforts beyond G20 jurisdiction, promoting global coordination and cooperation, facilitating information exchange, and bridging gaps in data.
The decision came during the fourth and final meeting in Marrakesh, Morocco under the chairmanship of India. Furthermore, the release where did it go,
“We adopt the roadmap proposed in the synthesis paper as the G20 Roadmap on Crypto Assets… We call for rapid and coordinated implementation of the G20 Roadmap, including the implementation of the policy framework; Outreach beyond G20 jurisdiction; global coordination, cooperation and information sharing; and addressing data gaps”.
The communique underlined that G20 Finance Ministers and Central Bank Governors (FMCBGs) will request systematic and periodic reports from the IMF and FSB regarding the progress of the implementation of the Roadmap. Furthermore, it expressed support for the continued efforts and worldwide adherence to the standards established by the Financial Action Task Force (FATF) regarding cryptocurrency assets.
G20 focuses on strengthening MDBs
The G20 FMCBG communiqué highlights a number of important topics, not limited to crypto assets. These include measures to strengthen multilateral development banks (MDBs), strategies to manage global debt vulnerabilities, increased cross-border payments, support for a sustainable recovery from the COVID-19 pandemic, and progress on climate action.
According to the release, the ministers expressed their commitment to drive ambitious initiatives in the development and empowerment of MDBs to address contemporary global challenges. They also discussed paying special attention to meeting the development needs of low- and middle-income countries.
Furthermore, it underlined the importance of taking more proactive steps in implementing the G20 independent review of the MDBs’ capital adequacy framework (CAF) within the governance structures of the MDBs while maintaining the long-term financial soundness of the MDBs.
G20 leaders acknowledged that crypto assets offer potential benefits in areas such as financial inclusion, innovation and operational efficiency. However, they also identified risks related to consumer and investor protection measures, market integrity, tax avoidance, money laundering, terrorism financing and financial stability.
Bhushan is a fintech enthusiast and has a good grasp of understanding the financial markets. His interest in economics and finance drew his attention to the newly emerging blockchain technology and cryptocurrency markets. He is in a constant process of learning and keeps himself motivated by sharing his acquired knowledge. In his spare time he reads adventure fantasy novels and occasionally explores his culinary skills.
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