Crypto at G20 Summit: India recommends a joint technical paper by IMF & FSB on regulation

In the latest update on the G20 meet, India has suggested a joint technical paper by the two international bodies, namely the IMF and FSB. IMF may consider banning private cryptos.

By Jasmine Anand:

India has proposed a joint technical paper by the IMF (International Monetary Fund) and the FSB (Financial Stability Board) for help in the formulation of a coordinated and comprehensive policy approach to crypto assets.

Both the above agencies are expected to present their papers in October this year, i.e., during the 4^th G20 Finance Ministers and Central Bank Governors (FMCBG) Meet, stated the Ministry of Finance, following a panel discussion on “Policy Perspective: Debating the road to policy consensus on crypto assets” under the G20 India Presidency.

Further, the Ministry asserted, “The discussions are further expected to build informed debate within the G20 meetings and lead to the formulation of a coordinated and comprehensive policy approach.”

Broadening discussion on crypto assets

It must be noted that apart from the financial integrity concerns, the Indian G20 Presidency aims to broaden its discussion on crypto assets and intends to capture the macroeconomic implications and widespread crypto adoption in the economy. This would require an informed, systematic, and data-centric approach to the global challenges and opportunities of crypto assets.

In order to inform policymakers about the broader macroeconomic and financial stability implications of crypto assets, India has proposed such an initiative.

Further, prohibition of private cryptos should be an option if regulations fail, states Kristalina Georgieva, IMF’s managing director. She added, “We have to differentiate between central bank digital currencies that are backed by the state and stablecoins, and crypto assets that are privately issued.”

Here, it must be mentioned that the international body, on Friday, put together a comprehensive paper on the macro-financial implications of crypto assets for deliberation by the G20 FMCBG.

Moreover, as per a statement by the Press Information Bureau, several deliberations about the said issue are expected during the course of G20 meetings this year, which would eventually help in the development of informed debate within the G20 meetings and pave the way for the formulation of a coordinated and comprehensive policy approach.