Cryptocurrency Reforms on G20 Agenda Under India's Leadership

The G20, under India's presidency, plans to develop a unified framewor

The G20, which is an intergovernmental forum consisting of 19 countries and the European Union, has plans to develop a unified framework to address the risks associated with cryptocurrency investments, according to India's finance minister, Nirmala Sitharaman, who is currently serving as the president of the G20. 

Sitharaman highlighted the recent collapses and shocks in the cryptocurrency market, emphasizing the need for coordinated efforts from all jurisdictions to tackle the global reach of cryptocurrencies. She spoke about the importance of cryptocurrencies in the discussions under India's G20 presidency and expressed the aim to create a common framework for all countries to deal with this matter.

Sitharaman also revealed that the G20 has a broader goal of bringing together global economies to combat debt distress and hyperinflation in smaller economies like Sri Lanka and Ghana. She mentioned that multilateral institutions are working on resolutions for debt-laden countries, which are expected to be implemented in the next 3 to 5 years.

Meanwhile, the recent success of Bitcoin in reducing the impact of hyperinflation and dependence on the U.S. dollar in El Salvador has highlighted the importance of cryptocurrencies as an asset. India's home-grown payment network, the unified payments interface (UPI), is also expanding its reach. 

Singapore's PayNow rapid payment system has integrated UPI, allowing for swift cross-border payments. Several major banks in India, including State Bank of India, Indian Overseas Bank, Indian Bank, and ICICI Bank, will facilitate outgoing remittances, while Axis Bank and DBS Bank India will facilitate incoming remittances.

India's G20 presidency will come to an end on November 30, 2023, leaving a window of approximately seven months for the G20 countries to work on developing blanket reforms for cryptocurrencies that can be implemented globally. 

Sitharaman's vision for coordinated global crypto policies reflects India's commitment to addressing the challenges and risks associated with cryptocurrencies at the international level, while also focusing on broader economic issues such as debt distress and hyperinflation in smaller economies. 

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