G20 Expresses Optimism About Impact of Cryptos On Global Economy
One of the hottest topics being discussed in the G20 meeting, which is currently being held in Argentina, is cryptocurrencies and blockchain technology.
In this regard, G20 forum has released a report expressing optimism about the impact of cryptocurrency and blockchain technology on the world economy.
The report states that “technological innovations, including those underlying crypto-assets, can deliver significant benefits to the financial system and the broader economy.”
While highlighting the volatile and unpredictable nature of crypto assets, the report expresses issues related to investor protection. The report says “however, raise issues with respect to consumer and investor protection, market integrity, tax evasion, money laundering and terrorist financing.”
The finance ministers, however, have not detailed the benefits which cryptocurrencies can bring to the financial markets. However, the ministers have pointed out that cryptocurrencies, which are mainly decentralized, lack the primary characteristics of sovereign currencies.
The G20 further stated that it will continue to study the long-term impact of cryptocurrencies on the global economy, while actively monitoring developments in the cryptocurrency space.
“While crypto-assets do not at this point pose a global financial stability risk, we remain vigilant. We welcome updates by the FSB and the SSBs and look forward to their future work to monitor the potential risks of crypto-assets, and to assess multilateral responses as needed. We reiterate our March commitments related to the implementation of the FAFT standards and we ask the FAFT to clarity in Octover 2018 how its standards apply to crypto-assets.”
Notably, during the previous G20 meeting held in March, the finance ministers agreed to collect more data regarding the impact of cryptocurrencies on the world economy before looking at any potential regulations.