G20 leaders have issued their statement following a two-day summit in New Delhi, with India presiding over the G20 this year. The 37-page statement includes a section on the policy and regulation of digital assets and central bank digital currencies (CBDCs).
Regulation of Digital Assets and CBDCs
In the statement, leaders express their continued vigilance regarding the rapid developments in the digital asset ecosystem. They endorse the Financial Stability Board’s (FSB) high-level recommendations for regulating, supervising, and overseeing digital asset activities and markets, as well as global stablecoin arrangements. They call for the effective and timely implementation of these recommendations on a global scale to prevent regulatory arbitrage.
Reports on Digital Assets
G20 leaders welcome several reports on digital assets, including the shared workplan between FSB and Standard-Setting Bodies (SSBs), the IMF-FSB Synthesis Paper, and the BIS Report on The Crypto Ecosystem: Key Elements and Risks. These reports aim to support a coordinated and comprehensive policy and regulatory framework, considering risks specific to emerging market and developing economies (EMDEs) and aligning with global standards to combat money laundering and terrorism financing. Finance ministers and central bank governors will discuss further steps in October 2023.
Central Bank Digital Currencies (CBDCs)
Regarding CBDCs, the statement acknowledges discussions on potential macro-financial implications related to their introduction and adoption, particularly in cross-border payments and the international monetary and financial system.