‘G20 warming up to global crypto action’ – Times of India

NEW DELHI: There is greater acceptance among G20 members that any action on crypto assets must be global, FM Nirmala Sitharaman has said and asserted that the group of developed and emerging economies agrees that it will not be possible for a single country to deal with crypto assets.
She said there has to be a coordinated global understanding to regulate crypto assets. Sitharaman said the International Monetary Fund’s (IMF’s) paper on the issue is being discussed and the paper by the Financial Stability Board (FSB) will be considered soon. Thereafter a synthesis paper will be prepared, based on the IMF and FSB papers, the FM said.
“There is a consciousness that crypto assets, particularly those not backed by any sovereign assets, can themselves cause macroeconomic instability,” said Sitharaman at a news conference on the sidelines of the second meeting of G20 FMs and central bank governors under India’s G20 presidency in Washington.
Members also deliberated on the macroeconomic and financial challenges posed by the crypto ecosystem and exchanged views on potential global policy responses to such assets, taking into account the risks, especially to emerging markets and developing economies (EMDEs). Cooperation on cryptocurrency is an issue on which PM Narendra Modi and Sitharaman have repeatedly flagged as India decides how to handle the asset, which has been prone to large price swings with the RBI as well as some of the other central banks flagging their concerns.
There is, however, a view that given the entry of the asset and the way technology is shaping up, there may be a need to have a regulatoryframework in place.
During the session on the global economy and international financial architecture at the meeting of FMs and central bank governors, members discussed key challenges to the global economic outlook, including the war in Ukraine, food & energy insecurity, climate change, and recent risks to financial stability.
According to an official statement, members agreed that G20 can contribute to building a common understanding on fostering a conducive environment for global economic recovery, and ensuring that the most vulnerable countries and sections of the population are adequately protected.