For improved global governance, the G20 (Group of 20) countries are attempting to reach an understanding on crypto assets’ guidelines.
India, which presently holds the G20 chair, is hosting the group’s inaugural conference of central bank and finance officials in Bengaluru from December 13-15.
Ajay Seth, India’s federal economic affairs secretary, stated on Wednesday that the participating countries are proposing a policy consensus in response to the rising popularity of crypto assets and their impact on the economy and monetary infrastructures.
The two-day summit, which kicked off the G20 Finance Track during India’s Presidency, was attended by 184 delegates representing central banks and finance deputies from 20 countries and 13 guest states.
G20 Objective: Attain Consensus Policy
“The regulation should be derived from the policy concept taken. As a matter of fact, one of the priorities is to help countries build a consensus for policy approach to digital assets,” Reuters quoted Seth as saying during the summit.
Gita Gopinath, the First Deputy Managing Director of the International Monetary Fund, stated that the G20 can make tangible progress in three crucial areas under India’s presidency: debt alleviation, crypto currency laws, and climate funding.
The initiative comes on the heels of the collapse of crypto exchange FTX, which resulted in criminal charges against the exchange’s founder and former CEO, Sam Bankman-Fried.
Crypto total market cap at $818 billion. | Chart: TradingView.com
India’s G20 Leadership Boosts Country’s Crypto Potentials
The bankruptcy of FTX and the departure of Bankman-Fried have left consumers in uncertainty and investors writing off what was once considered the next big thing in the crypto space.
Meanwhile, in an interview with journalists, Seth stated that, in the wake of the COVID-19 pandemic, not only low-income countries but also middle-income nations face debt issues.
“The government and private sector are both burdened by debt pressure. This topic has been discussed extensively. India has also proposed a number of financial-related initiatives… which have received widespread backing from G20 countries,” The Indian Express quoted Seth as saying in a report.
India, the third largest economy and second most populous nation in the world, took up the G20 leadership from Indonesia earlier this month.
The group consists of 19 countries including the European Union and accounts for around 85% of the global gross domestic product.
India’s G20 chairmanship has boosted the country’s crypto industry’s prospects. The Reserve Bank of India and other Indian officials have in the past emphasized the significance of a worldwide framework for crypto regulation.