G20 finance ministers and central bank governors recognize that cryptocurrencies pose significant risks to financial stability, monetary systems and cybersecurity, India’s central bank governor reportedly said The G20 is a global forum for the development of cryptocurrency regulation. Crypto regulation was one of the key topics discussed at the G20 meeting over the weekend.
G20 Agrees Crypto Poses Major Risks to Financial Stability, Says RBI Governor
Reserve Bank of India (RBI) Governor Shaktikanta Das spoke about cryptocurrencies at a media briefing Saturday following the G20 Finance Ministers and Central Bank Governors meeting in Bengaluru. According to India’s state media agency News On Air,
Das told the media that there is now widespread recognition and acceptance of the fact that cryptocurrencies or assets are a major risk to financial stability, the monetary system, and cybersecurity.
Das also noted that G20 representatives have expressed interest in a central bank digital currency (CBDC) pilot project in India and other countries, the magazine reported. India’s central bank launched a digital rupee pilot last November and December.
At a media briefing after the G20 Finance Ministers and Central Bank Governors meeting, Indian Finance Minister Nirmala Sitharaman said there is almost a clear understanding that anything not backed by a central bank is not a currency. She emphasized that this is a position India has taken for a very long time.
At the G20 meeting, India asked the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to prepare a joint paper on crypto and help develop a “comprehensive” crypto policy. IMF Managing Director Kristalina Georgieva called for tighter crypto regulations and stressed that bans should not be taken off the table. In addition, the IMF Executive Board recently issued guidance for developing an effective crypto policy.
The RBI has repeatedly stated that cryptocurrencies not backed by the central bank should be banned altogether. However, India’s Finance Minister has previously stated that bans and regulations are only effective if done in cooperation with other countries. U.S. Treasury Secretary Janet Yellen said the U.S. has not suggested a total ban on crypto activities, but stressed that it is “important” to establish a strong regulatory framework for crypto.
Meanwhile, representatives from more than 200 countries and regions recently met and agreed to implement the Financial Action Task Force (FATF) standards on cryptography in a timely manner.
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