• The G20 is working towards developing a global framework to address the risks associated with cryptocurrencies.
• India’s finance minister, Nirmala Sitharaman, has called for a global consensus on cryptocurrency regulation.
• El Salvador’s economy has demonstrated the value of digital assets like Bitcoin in mitigating hyperinflation and reducing dependence on the U.S. dollar.
G20 Nations Pursue Unified Approach to Address Crypto Risks
The G20 forum, under India’s presidency, is working towards establishing a global framework to help countries combat the challenges and risks associated with the rapidly evolving cryptocurrency landscape. The G20 is pushing for a coordinated approach to address these issues from all jurisdictions, as multiple ecosystem failures continue to affect investors globally. India’s finance minister Nirmala Sitharaman has emphasized the need for such unified action and urged for a global consensus on cryptocurrency regulation, asserting that individual reforms will not effectively tackle the far-reaching consequences of cryptocurrencies.
India’s Presidency in G20
Under India’s current presidency of G20, which ends on Nov. 30th 2023, there is an ambition to unite global economies to fight against debt issues and hyperinflation in smaller countries such as Sri Lanka and Ghana, as well as showcase examples such as UPI (Unified Payments Interface) which demonstrate digital payments potential in promoting financial inclusion and enabling cross-border transactions while boosting economic growth.
El Salvador’s Economy
El Salvador’s economy has demonstrated how digital assets like Bitcoin could mitigate hyperinflation and reduce dependence on the U.S dollar due to better than expected outcome of G20 meeting crypto talks back in March 27th 2021.
Cryptocurrencies have become part of G20 agenda under India’s presidency which pushes for worldwide collaboration when it comes down to regulating this market based asset class by providing comprehensive yet universally applicable regulations during their tenure before November 30th 2023 .