October 12, 2023
By Anjali Kochhar
Finance ministers and central bank governors from the G20 nations are poised to convene in Marrakesh this week, with a substantial agenda focusing on the regulation of crypto assets and the reform of multilateral development banks (MDBs). Following the G20 leaders’ endorsement of recommendations by the Financial Stability Board (FSB) in September, the global risk watchdog has emphasised the need for robust supervision and integration of digital assets into financial systems.
A senior government official, speaking on condition of anonymity, acknowledged the higher risks faced by emerging market economies like India, as outlined in the FSB synthesis paper. India is set to present its position, carefully considering its national interests. The International Monetary Fund (IMF) and FSB’s joint synthesis paper, released on 7th September, underscores the challenge of implementing a blanket ban on crypto assets while recognising that increased adoption could impact monetary policy.
Meanwhile, the Reserve Bank of India (RBI) has expressed reservations amid a surging demand for cryptocurrencies within the nation, advocating for an outright ban on digital currencies. Industry leaders are emphasising the critical role that global regulations will play in shaping the crypto industry’s future. Nischal Shetty, founder of crypto exchange WazirX and co-founder of Shardeum, expressed optimism, emphasising the importance of governments collaborating with industry stakeholders to craft fair and effective regulations.
In addition to crypto regulation, the G20 meeting will delve into the reforms proposed by the second part of the NK Singh and Lawrence Summers panel report. Set to be unveiled ahead of the meeting, this report builds on the initial release in July, focusing on operational reforms, response speed, and private capital mobilisation. It will also present a new foreign currency hedging mechanism. The initial report urged an increase in MDBs’ annual spending by $3 trillion by 2030, allocating $1.8 trillion for climate action and $1.2 trillion for achieving sustainable development goals (SDGs).
Finance Minister Nirmala Sitharaman recently chaired a meeting with the heads of MDBs and co-convener of the G20 independent expert group, NK Singh. The discussions underscore the significance of the upcoming G20 meeting in shaping the global financial landscape, offering a platform for critical decisions regarding crypto regulation and MDB reforms.
As the world watches, the outcomes of the Marrakesh meeting are anticipated to have far-reaching implications, not only for the crypto industry but also for the broader realm of international finance and development.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.