G20 meet: India proposes joint technical paper by IMF, FSB on crypto-assets

These organisations are expected to present their joint paper during the fourth G20 Finance Ministers and Central Bank Governors Meet, scheduled next October. This would help in the formulation of a coordinated and comprehensive policy approach to crypto assets, at a time when many countries, including India, do not have a regulatory framework for crypto assets.

Several discussions on the issue are expected during the course of G20 meetings this year, which will help “build informed debate within the G20 meetings and lead to the formulation of coordinated and comprehensive policy approach,” according to a Press Information Bureau statement.

The IMF-JSB paper is “expected to integrate the policy questions pertaining to macro-financial and regulatory perspectives of crypto assets and facilitate a global consensus on a well-coordinated and comprehensive policy approach to crypto assets”.

The Indian Presidency had requested the IMF to draft a discussion paper on the topic for the second G20 Finance and Central Bank Deputies Meeting where policy perspectives for crypto assets were discussed. Tommaso Mancini-Griffoli, division chief in IMF’s Monetary and Capital Markets Department, in his presentation highlighted “the consequences of crypto adoption on the internal and external stability of a country’s economy” as well as on the structure of its financial system.

The discussions also stressed the need for a common taxonomy and a systematic classification of crypto assets, their benefits and risks, effects on the macroeconomy and financial stability issues.