G20 finance chiefs widely acknowledge crypto poses major risks to financial stability, says Central Bank of India Governor – Regulation
G20 finance ministers and central bank governors recognize that cryptocurrencies major risks to financial stability, monetary systems and cybersecurity, India’s central bank governor reportedly said. Crypto regulation was one of the main topics discussed during the G20 meeting over the weekend.
G20 agrees crypto poses major risks to financial stability, RBI Governor says
Reserve Bank of India (RBI) Governor Shaktikanta Das spoke about cryptocurrencies during a media briefing on Saturday after the G20 meeting of finance ministers and central bank governors in Bengaluru. According to India’s state media agency News On Air:
Das told the media that the fact that cryptocurrencies or assets pose major risks to financial stability, monetary systems and cybersecurity is now widely recognized and accepted.
It also indicated that G20 delegates have expressed interest in central bank digital currency (CBDC) pilot projects in India and other countries, the publication said. The Central Bank of India started its digital rupee pilots in November and December last year.
During a media briefing concluding the G20 meeting of finance ministers and central bank governors, Indian Finance Minister Nirmala Sitharaman said there was almost a clear understanding that anything not backed by the central bank is not currency. She stressed that this is the position that India has held for a very long time.
During the G20 meeting, India asked the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to create a joint paper on crypto to help formulate “comprehensive” crypto policies. IMF Managing Director Kristalina Georgieva has called for more crypto regulation, stressing that bans should not be taken off the table. Additionally, the Executive Board of the IMF recently released guidance for developing effective crypto policies.
The RBI has repeatedly said that cryptocurrencies that are not backed by the central bank should be banned entirely. However, India’s finance minister previously said any ban or regulation will only be effective if done in cooperation with other countries. US Treasury Secretary Janet Yellen said that the US has not proposed an outright ban on crypto activities, but stressed that creating a strong regulatory framework for crypto is “critical”.
Meanwhile, delegates from over 200 jurisdictions recently met and agreed to implement the Financial Action Task Force (FATF) crypto standards in a timely manner.
What do you think of the G20 finance ministers and central bank governors agreeing that crypto poses major risks to financial stability? Let us know in the comment section below.
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Source: Crypto News Deutsch
