The G20 finance ministers and central bank governors met on October 13, 2023, and called for swift and coordinated implementation of the G20 roadmap to deal with crypto assets.
The roadmap, which was adopted in July 2023, outlines a number of policy measures that G20 countries can take to address the risks associated with crypto assets, while also supporting innovation and promoting financial inclusion.
“We adopt the roadmap proposed in the Synthesis Paper as a G20 Roadmap on Crypto Assets…We call for swift and coordinated implementation of the G20 Roadmap, including implementation of policy frameworks; outreach beyond G20 jurisdictions; global coordination, cooperation and information sharing; and addressing data gaps,” said a communique issued during the fourth meeting of the FMCBG on Thursday.
The G20 has crafted an action-oriented roadmap on crypto assets, aimed at coordinating global policy and creating mitigating strategies and regulations for these emerging funds. Globally, the digital asset ecosystem is evolving rapidly, stirring both a sense of opportunity and concern in varying measures. The G20's roadmap is a significant step towards creating a structured regulatory framework, seeking to instill investments with credibility and security.
Crucially, the roadmap also focuses on the implications for Emerging Markets and Developing Economies (EMDEs), which are anticipated to bear the brunt of the crypto market's volatility.
The communique by the Finance Ministers and Central Bank Governors (FMCBG) evidenced significant alignment with the G20 New Delhi Leaders Declaration (NDLD). The press statement from the finance ministry highlights the beneficial impact of this consensus achieved at last month's Leaders’ Summit.
In efforts to address escalating global challenges of the 21st century, policy and finance ministers from the G20 countries have pledged to strengthen Multilateral Development Banks (MDBs).
“We re-emphasise the need for an additional push for continued and further impetus for ambitious implementation of the recommendations of the G20 Independent Review of MDBs Capital Adequacy Frameworks (CAFs) within MDBs’ own governance frameworks while safeguarding their long-term financial sustainability, with a regular review of the progress of implementation on a rolling basis…,” it said.
G20 Ministers have publicly lauded the hard work undertaken by the G20 Independent Expert Group (IEG) in compiling the second volume of their report. They acknowledged the inevitable role of the Multilateral Development Banks (MDB) in addressing global hurdles and fostering development. They mentioned that each MDB’s board is ideally situated to decide on needed capital increase, apart from measures laid down by the Corporación Andina de Fomento (CAF).
Going forward, it said, “we call on the International Financial Architecture Working Group to deliberate on the IEG recommendations in consultation with MDBs and suggest a way forward for better, bigger and more effective MDBs, including ways to work together better as a system, in our meeting in April 2024.”
The G20 Finance Ministers and Central Bank Governors (FMCBG) have urged the International Monetary Fund (IMF) and World Bank to provide a comprehensive report at their forthcoming meeting, detailing the efforts undertaken to bolster the domestic resource mobilisation in Emerging Market and Developing Economies (EMDEs).
Beyond the Common Framework, the G20 Finance Ministers & Central Bank Governors (FMCBG) have unanimously called for expedited efforts to resolve the debt situation of Sri Lanka. The group appreciates all initiatives that aim for a prompt conclusion to the ongoing progress.
The ministers also took the opportunity to express their appreciation for the International Financial Architecture Working Group. Commended for its initiatives, the group has been making strides on the global debt agenda, including the drafting of the G20 Note on the Global Debt Landscape.
The G20 Finance Ministers have affirmed their dedication to advancing the G20 Roadmap for Enhancing Cross-Border Payments. Taking stock of the third annual progress report on the Roadmap and the first annual monitoring report keyed with performance indicators, the ministers emphasized their commitment to meeting the set targets.
This unanimous decision was part of the newly launched G20 2023 Financial Inclusion Action Plan. Under this plan, the Global Partnership for Financial Inclusion (GPFI) will persist in advancing financial inclusivity across access, usage, and quality, for individuals and MSMEs. The methods adopted will largely leverage innovative digital public infrastructures, propelling inclusive growth and sustainable development.
The Financial Action Task Force (FATF) has set a new benchmark in the international financial arena by finalising the guidance on trusts and legal arrangements. This significant initiative aims at consolidating the beneficial ownership transparency, a vital step towards suppressing money laundering and funding of terrorists. Countries globally are willingly committing to effective implementation of this revised standard that acts as a stepping-stone towards a safer financial environment.
The communique reflecting the outcomes of the recent G20 New Delhi Summit has underscored several Financial Track workstreams, initiated post the July FMCBG meeting. These results elucidate the concerted efforts in line with G20 objectives to promote financial inclusion, digital economy, global health, and sustainable finance, among others.
Moreover, the announcement of Brazil as the G20's new presiding country has been warmly received. As the upcoming Brazilian Presidency prepares to take on its role, eager anticipation is in the air. The global community looks forward to Brazil's leadership, hoping it will persist with efforts towards enhancing international economic cooperation, enforcing the G20's vision of prosperous and inclusive growth, and fostering economic resilience across the globe.
With inputs from PTI
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