G20 finance ministers and central bank Governors have noted that cryptocurrencies pose a major menace to financial stability, financial instruments, and cyber security. India’s central bank has been cited. Crypto was one of the main topics at the G20 meeting over the weekend.
G20 Claims Crypto Assets Pose a Major Threat to Financial Stability, RBI Governor Reports
Reserve Bank of India (RBI) Governor Shaktikanta Das held a press conference in which cryptocurrency was the main topic of discussion. Saturday after the G20 meeting, finance ministers and central bank governors met in Bangalore. According to India’s state media agency, Press Information Bureau:
The media was informed that crypto assets and currencies present a serious risk to financial stability, financial systems, and cyber security.
Das also noted that G20 delegates expressed interest in central bank digital currency (CBDC) pilot projects. India sent a publication to various countries. India’s central bank began pilot tests for digital rupees back in 2008. November and December of last year.
At the end of the G20 meeting by finance ministers and central bank governors, India’s finance minister Nirmala Sitharaman it was suggested that there is a near-universal consensus that a coin not backed financially by a central bank should not be deemed financial. She stressed that this is the best course of action and it has taken a long while.
During the G20 meeting, India requested the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to provide a joint paper about crypto to aid in the formation of “comprehensive” crypto policies. IMF Managing Director Kristalina Georgieva called for more regulation of cryptocurrency and stated that the ban should not be lifted. Moreover, recently the IMF executive board issued guidelines for building effective crypto policies.
The RBI has repeatedly said that cryptocurrency that isn’t backed by the central bank should be outlawed. However, India’s finance minister previously stated that banning and regulating is only effective if it is done in tandem with other nations. US Treasury Secretary Janet Yellen although the US has not yet commanded a ban on all crypto-related activities, they have been urged to do so. “critical” in establishing a solid regulatory framework for cryptocurrencies.
Meanwhile, more than 200 delegates recently agreed to the timely implementation of the Financial Action Task Force (FATF) requirements regarding crypto.
What do you think about G20 finance ministers, central bank governors, and central bank governors recognizing that crypto assets represent a significant risk to financial stability? Please leave your comments below.
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