NEW DELHI: Member countries will discuss a unified approach to regulating cryptocurrencies during the G20 leaders’ summit from September 9-10.
According to sources, discussions surrounding a common template for crypto asset regulation will take place this weekend during the summit. India, in particular, aims to drive consensus among G20 countries on standardised crypto norms, in view of the macroeconomic implications of digital currencies.
The Financial Stability Board (FSB) and the International Monetary Fund (IMF) have circulated a synthesis paper on regulating crypto assets among G20 countries. As per highly placed sources, proposals on cryptos by the IMF and FSB will be a focal point of discussion. Meanwhile, a Presidential note, prepared by India, will also be presented during the event. The FSB has been entrusted by the G20 to coordinate the creation of an effective regulatory framework for crypto assets.
G20 is also expected to focus on reforms and strengthening of multilateral development banks (MDBs) with a stress on the capital adequacy framework (CAF). The implementation of the CAF is anticipated to be a significant outcome of India’s Presidency. The CAF, based on the mandate from G20 leaders in Bali in 2022, could provide an additional lending capacity of about $200 billion over the next decade, as per sources.
India, together with Italy, co-chairs the Financial Inclusion Action Plan and will provide policy guidelines for G20 financial inclusion initiatives from 2024 to 2026. Progress has been made in managing global debt vulnerability, a key focus of India’s G20 Presidency. Three countries -- Zambia, Ghana, and Ethiopia -- have addressed their debt problem under the common framework, while Sri Lanka’s debt restructuring is being conducted outside the framework.