IMF, FSB to submit paper on crypto currency for G20 countries in 3 months

BENGALURU: Representatives of the G20 participating countries unanimously agreed that issues surrounding cybersecurity and risks should be addressed while dealing with cryptocurrencies. Even as they appreciated India’s stand on digital currencies, they decided that papers on this would be prepared by the Financial Stability didBoard (FSB) and International Monetary Fund (IMF) in three months and then a consensus would be drawn.  

Union Finance Minister Nirmala Sitharaman on Saturday said that various seminars and discussions on policy perspectives of cryptocurrency were held. It was decided that any currency not coming out of central banks should be considered unregulated currency, like crypto, she said.

She said, “This was India’s position, and I am glad that our stand has been acknowledged by all. Many speakers spoke of crypto risks and accepted that unless it is from sovereign banks it needs to be regulated..” 

She said countries and citizens recognise Bitcoins, table coins and other types of crypto currencies, but admit that there is a need for regulation. 

On February 23, a policy paper on cryptocurrency was discussed. In April, it will be discussed at an event to be held in Washington DC in July it will be discussed. IMF and FSB released the study on the global policy approach to crypto in September. 

Nirmala said the Canadian Central Bank governor said regulatory approvals should not be given without consent. The World Bank said that the views of developed countries should be taken, while the European Central Bank stressed on global coordination. 

Reserve Bank of India Governor Shaktikanta Das said that during the discussion, it was noted that there was interest among central banks two years ago and everyone thought it was advantageous. But now everyone is seeing the risks and concerns attached to it.