A security personnel stands guard opposite a G20 logo installed near Raisina Road as part of preparations for the upcoming summit, in New Delhi.
Credit: PTI Photo/Shahbaz Khan
A common framework or template on crypto assets is expected to emerge during G20 Summit under India's presidency to be held later this week, sources said.
The expected framework will provide guidance to deal with risks, both financial and regulatory, related to such digital currencies, they said.
India assumed the G20 Presidency on December 1 last year. The 18th G20 Summit, scheduled to be held on September 9-10 here, will be a culmination of all the G20 processes and meetings held throughout the year.
Sources said, India presidency of G20 has prepared a presidential note related to financial implication and regulatory implication related to crypto assets to aid global leaders to take a view on such digital currency.
The presidential note is the summary of two reports on crypto assets submitted by the International Monetary Fund (IMF) and Financial Stability Board (FSB) for helping heads of G20 leaders to take an informed view.
IMF has prepared a report from the point of view of economic and financial implications while the FSB report focusses on regulatory aspect of this and these reports have been submitted to the Finance Minister and Central Bank Governors meeting.
Sources said IMF-FSB Synthesis Paper including a road map is ready to support a coordinated and comprehensive policy and regulatory framework taking into account the full range of risks, and risks specific to the emerging market and developing economies (EMDEs) and ongoing global implementation of Financial Action Task Force (FATF)standards to address money laundering and terrorism financing risks.
The building blocks and road map regarding crypto assets have been arrived at subject to leaders taking a call at the G20 Summit here, sources said.
FSB and standard-setting bodies (SSBs) have been asked to promote the effective and timely implementation of these recommendations in a consistent manner globally to avoid regulatory arbitrage.
Somewhere there should be a common template and that template should consist of certain measures that are well defined for countries to adopt them and save the world from the risks of crypto assets, sources said.
The G20 comprises 19 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the UK, the USA and the European Union (EU).
Together, they account for over 80 per cent of the global GDP, 75 per cent of international trade and two-thirds of the world population.
With regard to other agenda of strengthening of Multilateral Development Banks (MDBs), sources said, these institutions need further capital support to meet the global challenges of the 21st century with a continued focus on addressing the development needs of low- and middle-income countries.
Sources said it is expected that a consensus on capital adequacy framework of MDBs to emerge during the Summit.
Enhanced capital adequacy of MDBs would provide additional headroom of USD 200 billion for lending to low- and middle-income countries.
On the agenda of financial inclusion, sources said G20 would adopt Financial Inclusion Action Plan for three years prepared under India's presidency.
India's presidency will leave a strong imprint on digital public infrastructure and financial inclusion, sources said. PTI DP HVA