G20 (Group of 20) is a worldwide platform for Central Banks and Governments which includes authorities from countries all over the world. G20 membership consists of; Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the United States of America and the European Union. Whilst the European aren’t a country per say, the EU is represented as one entity within G20 via the EU Commission and the European Central Bank.
According to France 24, today the Financial Stability Board (FSB), the group which sees the regulation of national economies within G20 has reported that it does not believe that cryptocurrency is a risk to international financial security at the moment and that therefore, cryptocurrencies should be allowed to flourish given adequate regulation. According to France 24, the FSB said:
“Crypto-assets do not pose a material risk to global financial stability at this time. Monitoring the size and growth of crypto-asset markets is critical to understanding the potential size of wealth effects, should valuations fall.”
And that therefore:
“The Basel Committee on Banking Supervision was conducting an initial stocktake on the materiality of banks’ direct and indirect exposures to crypto-assets. Cryptocurrencies will serve as a key measurement of the risks to the broader financial system.”
You can see the full article for yourself, here.
G20 are set to meet at a forum in Argentina this month. It is during this time that we expect to see more about how the FSB wants to see cryptocurrency regulation roll out internationally. It is pretty hard to know exactly which way this will go through, with countries like India and Mexico making up a portion of the G20 membership. It does seem that these countries are far more resistant to cryptocurrency so may be a little bit trickier to convince.
WIth many countries worldwide wanting to implement regulations, any advice given by the FSB at the G20 summit will be seen as stellar advice and should in turn help to encourage a worldwide adoption of cryptocurrency though I suppose that in some ways, this event could also do the complete opposite.