The G20 announced that the Financial Stability Board (FSB), the International Monetary Fund (IMF), and Bank for International Settlements (BIS) would soon publish recommendations for establishing a global crypto regulatory framework.
The group of the 20 biggest economies in the world, collectively known as G20, announced in a document summarizing the outcomes of meetings held with finance ministers and central bank governors that the FSB, IMF, and BIS are to deliver papers and recommendations establishing standards for a global crypto regulatory framework.
The FSB will offer guidance on regulating, supervising, and overseeing global stablecoins and crypto asset activities. The FSB will be the first to release documents, expected in July. In September, the FSB and IMF will jointly submit “a synthesis paper integrating the macroeconomic and regulatory perspectives of crypto assets.”
The IMF will also independently report on the “potential macro-financial implications of the widespread adoption” of CBDCs. The G20 statement said:
We look forward to the IMF-FSB Synthesis Paper, which will support a coordinated and comprehensive policy approach to crypto-assets, by considering macroeconomic and regulatory perspectives, including the full range of risks posed by crypto assets.
Finally, the BIS will provide a report on analytical and conceptual issues and possible risk mitigation strategies related to crypto assets. According to reports, a G20 financial task force will also examine the use of crypto to fund terrorist activities.
IMF: Banning Crypto Should Not Be Dismissed
In a recent interview with Bloomberg, the IMF managing director, Kristalina Georgieva, said banning cryptocurrencies should not be dismissed should they pose a greater risk to financial stability.
We are very much in favor of regulating the world of digital money, said Georgieva.
She added that regulating the crypto sectors is a top priority for the FSB, IMF, and the BIS.
She, however, said: “if the regulation is slow to come and crypto assets become a higher risk for consumers and potentially for financial stability,” banning crypto “should not be taken off the table.”
The IMF chief added that if greater predictability and consumer protection are in place, such measures will not be needed, “but we are not yet in this world.”
Georgieva: Cryptocurrencies Are “Not Money”
Georgieva added, “there’s still a lot of confusion” about digital money, and the Fund’s “first objective is to differentiate between central bank digital currencies that are backed by the state and publicly-issued crypto assets and stablecoins.”
She reasoned that state-backed stablecoins have “reliability” and “reasonably good space for the economy.” Non-backed crypto assets, she said, “are speculative, high-risk investment, and not money.”
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