 "Cryptocurrency")
The finance ministers of the G20 nations have called for swift and coordinated implementation of the G20 roadmap to deal with the issues related to crypto assets.
The G20 Roadmap on Crypto Assets adopted by the G20 Finance Ministers was spelt out in a Synthesis Paper prepared jointly by the International Monetary Fund (IMF) and Financial Stability Board (FSB).
"We adopt the roadmap proposed in the Synthesis Paper as a G20 Roadmap on Crypto Assets...We call for swift and coordinated implementation of the G20 Roadmap, including implementation of policy frameworks; outreach beyond G20 jurisdictions; global coordination, cooperation and information sharing; and addressing data gaps," said a communique issued during the fourth meeting of the FMCBG on Thursday.
The Finance Ministers and Central Bank Governors (FMCBG) of G20 nations met on the sidelines of IMF-World Bank annual meetings in Marrakesh, Morocco.
However, the communique made no mention of the ongoing Israel-Hamas war. At least 2,800 people in Israel and Gaza have been killed in the conflict, with thousands of others injured since October 6.
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Asked why there was no reference to the Israel-Hamas war as it has global economic implications, Finance Minister Nirmala Sitharaman said, "The communique was released last evening after the first session and there were not very many discussions on the conflict and therefore it didn't find a place on the in the communique.
On the impact of the conflict on the global economy, she said, "The recent crisis in the Middle East and the concerns about fuel (price rise) is back again. These are worries that many countries do hold and they expressed these as well. The concern and uncertainties are about the peace...fuel concerns affecting the food security aspects and fragmentation of supply chains..
Asked about the impact on the ambitious India-Middle East-Europe Economic Corridor (IMEC), Sitharaman said this India initiative is for long-term benefit and short-term development will not have any bearing on this.
Talking about the G20 Roadmap on crypto assets, she said it is a detailed and action-oriented roadmap that will help coordinate global policy as well as develop mitigating strategies and regulations on such assets while also taking into consideration the specific implications on Emerging Markets and Developing Economies (EMDEs).
Going forward, regular updates on the progress of the roadmap will be provided by the IMF and the FSB in G20 meetings, Finance Minister Nirmala Sitharaman said in the media briefing in Marrakesh.
The G20 has asked to identify an appropriate and coordinated timeline to commence exchanges by relevant jurisdictions under the Crypto Assets Reporting Framework (CARF), she said.
Considering the aspirations of a significant number of jurisdictions, she said, it has been decided that the information exchanges by CARF will start by 2027 by these jurisdictions.
To establish this process, the CARF group was formed in September 2023, she said, adding FMCBG expressed their commitment to take forward the actions mandated by the G20 Leaders in New Delhi..
The Finance Ministers and Central Bank Governors (FMCBG) communique drew guidance from the G20 New Delhi Leaders Declaration (NDLD) and benefited significantly from the consensus that was reached at the Leaders' Summit last month, a press statement issued by the finance ministry said.
The communique was unanimously adopted at the fourth and final meeting of the G20 FMCBG under the Indian Presidency in Marrakesh, Morocco on the sidelines of the IMF-WB Annual Meetings.
The G20 or Group of 20 is an intergovernmental forum of the world's major developed and developing economies. It comprises Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the UK, the US and the European Union (EU).
Together, they account for over 80 per cent of the global Gross Domestic Product, 75 per cent of international trade and two-thirds of the world population.
With regard to Strengthening Multilateral Development Banks (MDBs), the communique said that the ministers committed themselves to pursuing ambitious efforts to evolve and strengthen MDBs to address the global challenges of the 21st century with a continued focus on addressing the development needs of low and middle-income countries.
"We re-emphasise the need for an additional push for continued and further impetus for ambitious implementation of the recommendations of the G20 Independent Review of MDBs Capital Adequacy Frameworks (CAFs) within MDBs' own governance frameworks while safeguarding their long-term financial sustainability, with a regular review of the progress of implementation on a rolling basis...," it said.
The ministers appreciated the work undertaken by the G20 Independent Expert Group (IEG) in preparing Volume 2 of their report.
The board of each MDB will be best placed to determine if and when a capital increase is needed in addition to CAF measures to support efforts in addressing global challenges and meeting development needs, it said.
Going forward, it said, "We call on the International Financial Architecture Working Group to deliberate on the IEG recommendations in consultation with MDBs and suggest a way forward for better, bigger and more effective MDBs, including ways to work together better as a system, in our meeting in April 2024.
It called upon the IMF and World Bank to report by our next meeting on the work undertaken to support efforts at enhancing domestic resource mobilisation of EMDEs, considering each country's circumstances.
On managing global debt vulnerabilities, the ministers called for a swift conclusion of the debt treatment for Ethiopia while welcoming progress in Zambia and Ghana.
Beyond the Common Framework, we also welcome all efforts for timely resolution of the debt situation of Sri Lanka and the ongoing progress and call for its swift conclusion as soon as possible.
It also appreciated the efforts of the International Financial Architecture Working Group in taking forward the work on the debt agenda, including the preparation of the G20 Note on the Global Debt Landscape.
The G20 Finance Ministers agreed to continue implementation of the G20 Roadmap for Enhancing Cross-Border Payments and appreciated the third annual progress report on the Cross-Border Payments Roadmap and the first annual monitoring report with key performance indicators for meeting the targets.
With the new G20 2023 Financial Inclusion Action Plan, it was decided that the Global Partnership for Financial Inclusion would continue its work for advancing this in all three dimensions viz., access, usage and quality, for individuals and MSMEs through innovative methods, including digital public infrastructure in support of inclusive growth and sustainable development.
Appreciating the critical step taken by the Financial Action Task Force (FATF) in finalising guidance on trusts and other legal arrangements, the communique said, "We commit to effectively implement the associated revised standard on beneficial ownership transparency.
It welcomed the positive developments in FATF towards revising its standards on asset recovery and reinforcing global asset recovery networks so as to enhance global efforts to recover criminal proceeds promptly and effectively.
Apart from these outcomes, the communique reflects the outcomes from the various G20 Finance Track workstreams that were completed post-July FMCBG meeting and the G20 New Delhi Summit, it said.
The communique also welcomed the upcoming Brazilian Presidency of the G20 and looked forward to continued work on enhancing global economic cooperation to achieve strong, sustainable, balanced and inclusive growth.
