G20 finance ministers and central bank governors recognize that cryptocurrencies pose significant risks to financial stability, monetary systems and cyber security, the governor of India’s central bank has reportedly said. Crypto regulation was among the key topics discussed during the G20 meeting over the weekend.
G20 agrees that cryptocurrencies pose significant risks to financial stability, says RBI Governor
Reserve Bank of India (RBI) Governor Shaktikanta Das spoke about cryptocurrency during a press conference on Saturday after the G20 meeting of finance ministers and central bank governors in Bangalore. According to India’s state media agency, News On Air:
Das told the media that there is now widespread recognition and acceptance of the fact that crypto currencies or assets are significant risks to financial stability, monetary systems, and cyber security.
Das also noted that G20 delegates have expressed interest in central bank digital currency (CBDC) pilot projects in India and other countries, the publication conveyed. India’s central bank began its pilot tests of digital rupees in November and December last year.
During a news conference at the end of the G20 meeting of finance ministers and central bank governors, India’s finance minister Nirmala Sitharaman said there is an almost clear understanding that anything that is not backed by the bank center is not a coin. She stressed that this is the position that India has taken for a long time.
During the G20 meeting, India asked the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to produce a joint paper on crypto to help formulate “comprehensive” crypto policies. IMF Managing Director Kristalina Georgieva has called for more regulation of cryptocurrencies, stressing that the ban should not be lifted. Additionally, the IMF executive board recently published guidance for developing effective crypto policies.
The RBI has repeatedly said that cryptocurrencies that are not backed by the central bank should be banned outright. However, the Indian finance minister has previously said that banning or regulating will only be effective if done in collaboration with other countries. US Treasury Secretary Janet Yellen said that the US has not suggested a complete ban on crypto activities, but stressed that it is “critical” to establish a strong regulatory framework for cryptocurrencies.
Meanwhile, delegates from more than 200 jurisdictions met recently and agreed to the timely implementation of the Financial Action Task Force (FATF) standards on cryptography.
What do you think about G20 finance ministers and central bank governors agreeing that cryptocurrencies pose significant risks to financial stability? Let us know in the comments section.
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