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G20 Leaders Express Support for Financial Stability Board’s Cryptocurrency Regulation Recommendations

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Leaders of G20 Countries Support Cryptocurrency Regulation

Leaders of the G20 countries have expressed their support for the recommendations of the Financial Stability Board (FSB) regarding the regulation of cryptocurrencies. This historic decision was made during a meeting in New Delhi, where the leaders discussed the need to monitor the rapidly evolving field of digital finance.

Indian Finance Minister Nirmala Sitharaman announced the G20’s strong interest in regulating the global cryptocurrency industry. A roadmap for the future of cryptocurrencies is on the horizon.

The G20 Intergovernmental Forum, represented by finance ministers and central bank governors, will further advance the FSB’s cryptocurrency roadmap at a meeting in October 2023. The roadmap, detailed in the FSB’s Synthesis Paper, aims to establish a coordinated regulatory framework for all G20 members.

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Cryptocurrencies should not have legal status

One of the key recommendations in the roadmap is that cryptocurrencies should not be granted legal tender status by G20 members or any other countries. This recommendation is based on the potential negative impact on national and global monetary stability. Currently, only El Salvador has adopted Bitcoin as legal tender, while other countries have revoked such decisions.

The roadmap also addresses the unique risks posed by cryptocurrencies in emerging markets and developing economies. Measures to combat money laundering and terrorist financing are included, as these issues are increasingly important in cryptocurrency regulation.

In addition to private digital currencies, the G20 leaders also discussed central bank digital currencies (CBDCs) and their implications for cross-border payments and the global financial system. They expressed their commitment to using digital tools and technologies to ensure the safety of virtual ecosystems and promote financial inclusion worldwide.

Overall, the support of the G20 leaders for cryptocurrency regulation is a significant step towards establishing a global framework that addresses the challenges and risks associated with this rapidly evolving industry.

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