The meeting of the G20 finance ministers in Bangalore, India, was actually about the war in Ukraine and its economic consequences. Because inflation has still not been caught and the interest rate hikes are causing problems, especially in highly indebted developing countries. Problems that need answers.
The fact that the representatives of the 20 most important industrialized and emerging countries still found the time to talk about crypto regulation at least shows the importance that the committee now attaches to digital coins and tokens. in one joint position paper Finance ministers gave clear working instructions to the International Monetary Fund (IMF), the Bank for International Settlements (BIS) and the Financial Stability Board (FSB). They are to develop uniform standards for global crypto regulation.
The FSB submitted proposals for this last year. The Council should continue to develop the standards and present them in July 2023. The focus is on the regulation, supervision and monitoring of the crypto sector. In particular, “global stablecoins” are to be targeted. It is all about covering customer assets, explained IMF boss Kristalina Georgieva Bloomberg. If rules are missed, bans must also be considered, the 69-year-old said.
Together with the FSB, the International Monetary Fund is to assess the macroeconomic prospects and risks of crypto assets in a paper.
After the demise of the Terra ecosystem including the stablecoin UST, this step comes as no surprise. Shortly after the collapse, the BIS for tougher measures.
Meanwhile, the “bank of central banks” is concentrating on expanding the infrastructure for digital central bank money. On Monday, the panel presented the “Icebreaker” project. This is a platform that should make cross-border payments in different CBDCs possible in the future.