G20 leaders believe that cryptocurrencies can benefit the financial system and the economy

G20 leaders believe that cryptocurrencies can benefit the financial system and the economy
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The G20 meeting held in Japan Fukuoka ended in a good note with the world financial leaders and central banks welcoming the efforts being made by global regulators towards regulating the cryptocurrency sector.

Through a publication on the financial Ministry of Japan website, the leaders released a circular detailing their commendations to international regulators while at the same time laying out some recommendations. For the latter, the G20 financial leaders urged the Financial Stability Board (FSB) together with other global standard-setting bodies to keenly monitor the risks that come with assets in the crypto space.

In addition to monitoring happenings in the cryptocurrency space, the world financial leaders also want the regulatory organizations to take appropriate actions when the need arises. Per the released circular, the G20 financial leaders said;-

“Our only request to the standard setting bodies together with the FSB is to monitor risks that come with cryptocurrency while on the other hand, work on additional multilateral responses for the sector.”

Apart from just touching on the recommendations for regulatory bodies, the financial leaders also echoed a previous statement made from their July 2018 meeting in Buenos Aires. In the latest publication, the leaders talked about the benefits of the technological innovations behind the crypto space. In their view, the innovations can be of benefit to the financial sector at large and help in the growth of the economy. At the same time, the experts also raised their concerns about the same innovative technology.

According to the authors of the publication, at the moment, assets from the crypto space don’t pose any threat to the stability of the financial sector. However, that doesn’t mean it’s not causing any harm, and that’s why the leaders are urging stakeholders in the industry to be vigilant. In particular, the leaders want stakeholders to remain vigilant when it comes to countering the financing of terrorism (CFT), fighting money laundering and protecting investors together with customers.

While the above dwells more on the recommendations for the sector at large, the leaders are also looking forward to the implementation of the Financial Action Task Force’s (FATF) Interpretive Note and guidance on assets crypto.


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