G20 countries seek to create a global framework against crypto-related risk

G20 countries seek to create a global framework against crypto-related risk

The G20 also seeks to unite global economies to combat debt distress and hyperinflation in small economies such as Sri Lanka and Ghana.

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The G20, an intergovernmental forum that includes 19 countries and the European Union, has planned to create a common framework to help all countries manage risks associated with cryptocurrency investment.

The G20, under India’s presidency, called for coordinated global cryptocurrency policies — a vision presented by Nirmala Sitharaman, India’s finance minister. Sitharaman is concerned that multiple ecosystem collapses have already impacted investors around the world and that disparate reforms won’t help to address the global reach for cryptocurrencies.


Union Finance Minister Nirmala Sitharaman arrives for a business roundtable meeting organized by US India Business Council, in Washington. Source: Press Trust of India

She spoke at the Peterson Institute for International Economics Washington DC and highlighted numerous crypto crashes while emphasizing the need for coordinated efforts from all jurisdictions.

“Cryptocurrencies are an important part of #G20India’s discussion, given the many crashes and shocks in cryptocurrency. We want to create a common framework that all countries can use to address this issue.

Sitharaman also revealed the G20’s goal to unite global economies to combat debt distress and hyperinflation within smaller economies like Sri Lanka and Ghana. She said that this was her view:

“India has the opportunity to join G20 to tackle debt distress in low-income and middle-income countries. In 3 to 5 Years, multilateral institutions will have solutions for debt-laden nations.

India’s G20 presidency ends on November 30, 2023. This leaves roughly seven months for the group to create blanket crypto reforms that could apply across jurisdictions.

However, El Salvador’s previously troubled economy highlighted the importance of a cryptocurrency like Bitcoin ( BTC) in reducing hyperinflation and dependence upon the U.S. dollar.

Related: Crypto regulation is one of eight priorities under India’s G20 presidency — Finance minister

The expansion of India’s domestic payment network, the unified payments interface (UPI), continues.

PayNow, Singapore’s rapid payment system, recently integrated UPI to enable cross-border payments. It was announced that the State Bank of India and Indian Overseas Bank, Indian Bank, Indian Bank, and ICICI Bank would facilitate outgoing remittances. Axis Bank India and DBS Bank India would facilitate incoming remittances.