G20 discussed cryptocurrencies and stablecoins, urging countries to implement the cryptocurrency standards set by FATF
The G20 finance ministers and central bank governor had their first meeting in 2020 this weekend in Saudi Arabia. They discussed cryptocurrencies and stablecoins and issued a statement calling on countries to implement the cryptocurrency standards set by the Financial Action Task Force. They were also informed that the Financial Stability Council would soon give legal responses to cryptocurrencies.
The G20 finance ministers and central bank governors had their first 2020 meeting this weekend in Saudi Arabia
The first G20 Central Bank Finance and Finance Ministerial Meeting took place in Riyadh, Saudi Arabia, on February 22 and 23. Cryptocurrencies and stablecoins, like the Libra project of Facebook’s plan, were discussed.
G20 started discussing crypto regulations
In the G20 Communique released after the second day of the meeting, the chief financial officers explained that the global economic growth of people is expected to grow modestly in 2020 and 2021.
They said:
“We will strengthen global risk monitoring, including the recent COVID-19 outbreak, noting that risks are reduced for prospects that remain. Based on the Leadership Statement 2019, we urge countries to implement the recently adopted Financial Action Task Force (FATF) standards for virtual assets and related vendors.”
G20 meeting
The stablecoin theme is receiving a lot of attention
In the February 23 statement, G20 finance ministers and central bank governor also addressed the topic of stablecoins.
They said:
“We reiterate our statement in October 2019 regarding the so-called” global stablecoins “and other similar agreements that these risks need to be adequately assessed and addressed before they begin operations and support the FSB’s efforts in developing regulatory recommendations.”
The G20 is expecting reports of cryptocurrencies and stablecoins from several global standards-setting agencies, including the Financial Stability Commission (FSB), International Monetary Fund (IMF), and FATF. Furthermore, the G20 refers to stablecoins with the potential to achieve scale when launched as global stablecoins. The most concrete example is Facebook’s Libra.
ECB Chief Christine Lagarde (left) and Federal Reserve Chairman Jerome Powell at the G20 meeting in Saudi Arabia on Feb. 22 and 23
In a recent hearing before the House Committee on Financial Services with Federal Reserve Chairman Jerome Powell, another entity in a position to achieve a similar scale was the Chinese government. Therefore, Powell is encouraged to work on the digital dollar to be able to respond quickly to the deployment of digital yuan.
Following the leaders’ summit in Japan last year, the G20 issued a press release in October on global stablecoins.
They said:
“While recognizing the potential benefits of financial innovation, we agree that global stablecoins and other similar agreements imprint the possible system of giving rise to a range of public policies and risks. serious legal risk.”
Such risks, including in particular those associated with money laundering, illegal financing, and the protection of consumers and investors, should be appropriately evaluated and addressed before this project may start working.
The FSB cryptocurrencies will soon be available
The FSB consists of regulators, central banks, and governments from significant economies.
In the February 23 statement, the G20 financial directors also said:
“We ask the FSB, in coordination with the Committee on Payments and Market Infrastructures (CPMI) and other relevant standard-setting bodies and international organizations, to develop a roadmap to enhance global cross-border payment declared by October 2020.”
Ahead of the meeting this weekend, FSB President Randal K. Quarles sent a letter to G20 finance ministers and central bank governors about cryptocurrency and stablecoin issues.
In his letter, dated February 19, Quarles noted:
“The global financial system is continuously facing new challenges. Technology is changing the nature of traditional finance; the non-banking sector has grown and requires deep understanding and coordination more between the monitoring and management community. The pressure that can lead to market fragmentation exists. At the same time, critical monitoring and management issues require attention. ”
He explained:
“The FSB is being addressed to speed up the development of regulatory responses and monitoring needed for these new tools. It will produce a draft report on regulatory and intervention issues for community consultation in April.”
This article is referenced based on the original article from News.bitcoin
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