G20 Summit: Talks on cryptocurrencies, multilateral development banks reforms on agenda

Talks on cryptocurrency regulation and reforms for multilateral development banks are likely in the upcoming G20 Summit, reported Business Today. As per the report, the Finance team of G20 has made considerable progress on a common regulatory framework for cryptocurrencies as well as reforms for multilateral development banks.

Regulating Cryptocurrencies

Business Today mentioned that the International Monetary Fund and the Financial Stability Board has prepared a synthesis paper that has laid down a comprehensive roadmap and building blocks for regulating cryptocurrencies. This will now be taken up for further discussion at the Summit on September 9 and 10. In the synthesis paper, IMF has looked at macroeconomic risks from cryptocurrencies and the FSB paper has looked at the regulatory aspects. The report further said that there is expectation of a consensus on this.

Also Read: G20 Summit: What does it mean for India and its stock markets?

Business Today quoted an official and said that efforts taken to regulate Cryptocurrencies have been one of the biggest achievements for India's G20 Presidency.

“It will be taken up at the G20 Leaders’ Summit. Crypto currencies have huge implications on macro economic stability. Unless all countries come together to regulate these assets, it is not possible. Efforts of one country will not be adequate”, the official told Business Today.

Multilateral Development Banks' Reforms

A slew of recommendations are proposed for the Capital Adequacy Framework (CAF) for Multilateral Development Banks (MDB) which will be taken forward in the G20 Summit. The official also told Business Today that the MDBs are likely to implement the recommendations.

“MDBs are likely to implement the recommendation on the Capital Adequacy Framework, which will be one of the very strong outcomes of the Indian presidency”, the official told Business Today.

The framework was developed based on the mandate from Leaders in Bali in November 2022 and updates from MDBs in earlier this year. Initial CAF measures could yield additional lending headroom of about $200 billion over the next decade.