Nirmala Sitharaman, Indian Finance Minister, has announced that the G20 presidency will create a unified framework to manage risks associated with crypto. The framework will apply to all nations. This move comes after the recent decline in the crypto market.
This initiative aims to provide a structured approach to addressing issues and concerns related to cryptocurrencies on a global scale.
Although multiple ecosystem collapses have affected investors worldwide, Finance Minister Nirmala Sitharaman maintains that disconnected reforms in individual countries will be insufficient to address the global impact of cryptocurrencies.
Given the global nature of the cryptocurrency market, fragmented regulations may not adequately manage the associated risks and challenges. The G20 is an intergovernmental forum that comprises 19 countries and the European Union.
Nirmala Sitharaman highlighted at the Peterson Institute for International Economics in Washington DC:
Cryptocurrencies are a very important part of the discussion under the #G20India presidency, given so many collapses and shocks in cryptocurrencies. We seek to develop a common framework for all countries to deal with this matter.
According to the finance minister, G20 is trying to unite all nations in tackling debt difficulties in middle-income and low-income countries, such as Sri Lanka and Ghana.
In G20, there is an opportunity for India to bring all countries together to address debt distress in middle-income and low-income countries. Multilateral institutions are coming up with resolutions for debt-laden countries in 3 to 5 years’ time.
Further Discussions Involving Crypto
The Indian Finance Minister is scheduled to meet with the US Treasury Secretary Janet Yellen on Tuesday to discuss shared concerns. Furthermore, on April 12, India will co-chair the Global Sovereign Debt Roundtable with the World Bank and the International Monetary Fund (IMG).
The objective of the meeting will be to discuss the current global debt scenario and identify effective measures to tackle debt restructuring challenges.
The G20 presidency of India is set to conclude on November 30, 2023, which means that the group of 20 nations will have approximately seven months to develop a comprehensive and uniform set of cryptocurrency regulations that can be applied across various jurisdictions.
This timeline will require swift and effective collaboration among the member nations to establish these important guidelines that promote a safe and stable environment for investors and businesses in the digital asset industry.
A seminar on the macro-financial implications of crypto assets titled “Macro-financial Implications of Crypto Assets” will take place on April 14, 2023. Its objective is to examine the macro-financial impact of crypto assets.
