India, which currently holds the G20 Presidency, has asked the IMF and the Financial Stability Board (FSB) to jointly prepare a technical paper on crypto assets, which can be used to formulate a coordinated and comprehensive policy to regulate them. can be done in
The international organizations are expected to present their joint paper during the fourth finance ministers and central bank governors’ meeting in October 2023, said a finance ministry release.
“To complement the ongoing dialogue on the need for a policy framework, the Indian Presidency has proposed a joint technical paper by the International Monetary Fund (IMF) and the FSB, which would synthesize the macroeconomic and regulatory approach to crypto-assets. This will help in formulating a coordinated and comprehensive policy approach for crypto assets,” it said.
In their entirety, the IMF discussion paper, policy symposium and joint IMF-FSB paper are expected to integrate policy questions related to the macro-financial and regulatory approach to crypto assets and facilitate global consensus on a well-coordinated and comprehensive policy. Is. outlook for crypto assets, it said.
Despite the rapid growth of the crypto universe, there is no comprehensive global policy framework for crypto assets. Given concerns over the greater interconnection between crypto assets and the traditional financial sector, as well as the complexity and volatility surrounding crypto assets, policymakers are calling for tighter regulation.
Global standard-setting bodies such as the Financial Action Task Force (FATF), the Financial Stability Board (FSB), the Committee on Payments and Market Infrastructures (CPMI), the International Organization of Securities Commissions (IOSCO) and the Basel Committee on Banking Supervision (BCBS) have their Working within the respective institutional mandates, the regulators are coordinating the agenda, it said.
India looks forward to broadening the G20 discussion on crypto assets beyond financial integrity concerns and to wider economic impact and wider crypto adoption in the economy, it said, adding that a data-based and informed approach to global challenges and opportunities of crypto is needed. Will be assets, allowing G20 members to shape a coordinated and comprehensive policy response.
In order to inform policymakers about the broader macroeconomic and financial stability implications of crypto assets, the Indian Presidency requested the IMF to hold a discussion on the topic at the 2nd G20 Finance and Central Bank Deputies Meeting to be held in Bengaluru on 23 February 2023. Prepare a letter.
During said meeting, a symposium titled “Policy Perspectives: Debating the Road to Policy Consensus on Crypto Assets” was held as part of the Presidency’s efforts to broaden the dialogue around crypto assets. Went.
IMF speaker, Tommaso Mancini-Grifoli, presented a discussion paper during the event, highlighting the consequences of crypto adoption on the internal and external stability of the country’s economy as well as the structure of its financial system.
Mancini-Grifoli underlined that the purported benefits of crypto assets include cheaper and faster cross-border payments, more integrated financial markets and increased financial inclusion, but these have yet to be realized.
He further added that the issues with interoperability, security and efficiency cannot be guaranteed by the private sector and the digital infrastructure/platform critical to the ledger should be seen as a public good.
They also flagged the global information gap related to the crypto asset universe and the need to build a deeper understanding of the interlinkages, opportunities and risks related to crypto assets under the auspices of the G20.
Discussions covered a wide range of topics, including the need for a common classification and a systematic classification of the crypto asset universe, the benefits and risks of crypto assets, macroeconomic policy questions that need further evaluation, and financial stability issues and regulatory responses. Are included.
The statement added that the event helped start a broader dialogue on crypto assets, but also raised a number of relevant policy questions that need to be closely evaluated by policy makers and regulators.
In addition to evaluating the consequences of crypto assets for the wider economy, it also addresses whether crypto assets are truly the optimal solution to current challenges in global financial systems.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)