The "Macrofinancial Implications of Crypto Assets" report notes that digital currencies present myriad risks to the economies of G20 nations pertaining to both external and internal stability.
In line with India's pledge to develop a framework to regulate the digital asset industry, the FSB, IMF, and BIS will submit recommendations to G20, focusing on countering risks tied to the assets.
Industry experts believe that once India concludes its G20 presidency, there will be a global consensus on whether or not to view digital assets as securities or commodities.
India will lead the G20 for a year and other issues it will tackle include food security, climate financing, multilateral reforms, and disaster risk reduction.
The finance ministry and the Reserve Bank of India are reportedly in agreement that banning non-custodial digital asset wallets without international coordination will be an effort in futility.
Australian central bank governor Philip Lowe stated that the private sector has proven to be better than central banks at innovating and designing new features for digital assets.
The Financial Stability Board has stayed away from the industry but says the recent Terra debacle has made it rethink its stand as it called for strict oversight over Bitcoin.
China’s President Xi Jinping has called on G20 leaders to lay the groundwork for central bank digital currencies adoption by developing standards and principles.
In this week’s CoinGeek Pulse, Shenzhen residents receive digital yuan in People’s Bank of China’s red packet giveaway, G20 wants to set standards for sovereign digital currencies, and James Belding gave an online demonstration of the Tokenized platform.
While recognizing the rise in prominence of CBDCs, the Financial Stability Board is challenging the effectiveness and comprehensiveness of the existing financial regulations.
G20 nations could begin accepting digital payments this year after leaders from the powerful nations recently decided to lay the groundwork starting October.
The Financial Stability Board published a list of recommendations in a bid to shape a common global response to regulating stablecoins.
