At a recent meeting, the G20 nations came together to discuss the necessity of international collaboration and stablecoin regulation. Those in attendance include central bank governors and ministers of finance.
Cross-Border Collaboration On Crypto Regulation
Government representatives at the meeting stated that cross-border cooperation and stablecoin regulation were essential. This would allow for easier and uniform law in the crypto sector.
In recent months, the need for cooperation on crypto regulation has been a hot topic. The goal of the meeting, which took place from July 15th to 16th in Indonesia, was to foster collaboration.
The representatives discussed other matters at the meeting. According to public pronouncements, recent events have affected economies internationally. This includes the Ukraine conflict, the effect of the pandemic, food and energy crisis, and inflation.
Also, all parties were in support of preserving worldwide financial stability. They agreed on implementing the “G20 Cross-border Payment Roadmap” together with the regulation of stablecoins.
Countries And Financial Institutions Continue To Adopt Digital Assets
Yi Gang, the president of the PBoC (People’s Bank of China), was also at the conference. He declared that China would take part in formulating a blueprint for a transformative financial strategy.
The digital Yuan, the CBDC issued by its central bank, is the nation’s top priority for economic development. Gang also said certain negative pressures on the nation’s economy.
In Q2 2022, the economy of China grew by 0.4%. This was a disappointing quarter for the nation. It is coping with the epidemic’s effects, like other nations.
The cryptocurrency market is now firmly established in the mainstream. This is due to the strong interest from business institutions and individual investors.
Besides, the Central African Republic and El Salvador adopted BTC recently. They are two nations that have integrated crypto into their economic system.
Lowe Shows Support For Private Tokens
Due to the recent effects of cryptocurrencies, legislators are moving rapidly to regulate the sector. On most agendas, regulating stablecoins and CBDCs is of utmost importance.
Meanwhile, numerous government representatives have commented on the subject. This also includes the United States Treasury Department, which called for international collaboration on crypto regulation.
Furthermore, Phillip Lowe, governor of Australia’s central bank, talked about CBDCs and private tokens. He stated his preference for licensed private tokens compared to CBDCs.
However, most central bank governors do not support his view. The Bank for International Settlements (BIS) carried out a poll lately on central banks internationally. The result revealed that 90% of them were thinking of having CBDCs.