The G20 leaders have released their declaration following their summit in New Delhi. They endorsed the Financial Stability Board’s “high-level recommendations for the regulation, supervision, and oversight of crypto-assets activities and markets and of global stablecoin arrangements” and welcomed several reports by standard-setting organizations. The G20 leaders emphasized “the effective and timely implementation of these recommendations in a consistent manner globally to avoid regulatory arbitrage.”
G20 Releases Leaders’ Declaration
The G20 leaders released their declaration on Sunday following a two-day summit in New Delhi. India holds the G20 Presidency this year. The 37-page declaration includes a section on the policy and regulation of crypto assets and central bank digital currency (CBDC).
“We continue to closely monitor the risks of the fast-paced developments in the cryptoasset ecosystem,” the declaration states. “We endorse the Financial Stability Board’s (FSB’s) high-level recommendations for the regulation, supervision, and oversight of crypto-assets activities and markets and of global stablecoin arrangements.” The FSB finalized both the recommendations for crypto and stablecoins in July. The declaration continues:
“ We ask the FSB and SSBs to promote the effective and timely implementation of these recommendations in a consistent manner globally to avoid regulatory arbitrage.”
The G20 leaders welcomed several reports on crypto assets, namely “the shared FSB and SSBs [Standard-Setting Bodies] workplan,” “the IMF-FSB Synthesis Paper,” and “the BIS Report on The Crypto Ecosystem: Key Elements and Risks.”
The IMF-FSB Synthesis Paper includes a Roadmap “that will support a coordinated and comprehensive policy and regulatory framework taking into account the full range of risks and risks specific to the emerging market and developing economies (EMDEs) and ongoing global implementation of FATF standards to address money laundering and terrorism financing risks,” the declaration notes, adding:
“ Our finance ministers and central bank governors will discuss taking forward the Roadmap at their meeting in October 2023.”
Earlier this month, Indian Finance Minister Nirmala Sitharaman revealed that the G20 nations are actively discussing a global framework for crypto assets under India’s Presidency.
Regarding central bank digital currency, the declaration states: “We welcome discussions on the potential macro-financial implications arising from the introduction and adoption of central bank digital currencies (CBDCs), notably on cross-border payments as well as on the international monetary and financial system.”
The leaders further noted: “We welcome the BIS Innovation Hub (BISIH) Report on Lessons Learnt on CBDCs and look forward to the IMF Report on Potential macro-financial implications of widespread adoption of CBDCs to advance the discussion on this issue.”