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Thursday, March 23, 2023

G20 members say a complete ban on crypto should be considered

News ECG: According to Reserve Bank of India (RBI) Governor Shaktikanta Das, some G20 participants stated during this week’s deliberations that a comprehensive ban on cryptocurrencies should be taken into consideration.

At the end of the two-day meeting of finance ministers and central bank governors in Bengaluru on February 25, Das stated that “opinions raised indicating that the option of a limitation or prohibition should also be explored.” Finance ministries and officials from the central banks of the G20 countries agreed to regulate crypto assets, with an outright ban on them also being considered.

India has proposed a combined technical report by the International Monetary Fund (IMF) and the Financial Stability Board, which is situated in Switzerland, as part of this week’s G20 session (FSB). According to a statement from the government, this study would “synthesize the macroeconomic and regulatory views of crypto-assets” to aid in the creation of laws for the cryptocurrency industry.

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Anything produced by a body other than the central bank is not a currency, according to Finance Minister Nirmala Sitharaman, who oversaw the briefing for the media. Nonetheless, G20 members also acknowledged that the technology underlying crypto is beneficial for financial technology.

Moreover, Sitharaman stated that side events on digital assets are being considered for the IMF and World Bank Spring Meetings in Washington in April. Also, the FSB will table its paper on regulating crypto assets in July so that it may be debated at the upcoming meeting of finance ministers and central bank governors, which will take place in Gandhinagar.

She said that the IMF-FSB synthesis document would be delivered in September. The aforementioned IMF and FSB synthesis study will serve as the foundation for the next discussions to create an international crypto architecture, according to Das.

“But we’re still working on this. Let’s wait for the conversations to continue and see how it develops “said Das. “In any event, every nation is a sovereign nation in the end. Decisions will be made by the nations. Yet, it is to be assumed that once a G20 decision is made, the majority of the world’s nations will adhere to it.”

The RBI governor claimed that the G20 discussions demonstrated a broad understanding and acceptance of the reality that cryptocurrency posed a serious threat to monetary systems and financial stability, as well as associated cyber security concerns.

Under the notion that only a worldwide partnership would be effective given the cross-border scale, scope, and issues provided by crypto, India is attempting to forge an international agreement on cryptocurrency regulation.

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