The first G20 meeting of 2020 was organized in Riyadh, Saudi Arabia, from 22 to 23 February. Leaders from the world’s biggest economies discussed creating a global regulatory framework for cryptocurrencies and stablecoins.
After the end of a two-day meeting, the G20 stated that:
“Building on the 2019 Leaders’ Declaration, we urge countries to implement the recently adopted Financial Action Task Force (FATF) standards on virtual assets and related providers.”
They also stated:
“We reiterate our statement in October 2019 regarding the so-called ‘global stablecoins’ and other similar arrangements that such risks need to be evaluated and appropriately addressed before they commence operation, and support the FSB’s efforts to develop regulatory recommendations with respect to these arrangements.”
According to G20, in spite of having lots of potentials, cryptocurrencies bear certain risks. These risks, like money laundering, illicit finance, and consumer and investor protection, need to be evaluated. Only after addressing relevant concerns, these cryptocurrency projects should commence operation.
Global standard-setting bodies are preparing reports on cryptocurrencies and stablecoins. These include the Financial Stability Board (FSB), the International Monetary Fund (IMF), and the FATF. They are also creating a roadmap to enhance global cross-border payments. The FSB plans to draft their report with possible responses for public consultation in April.
The last G20 meeting was organized in Osaka, Japan. There, the world leaders unanimously agreed to follow the FATF standards for crypto-assets and related service providers. The FATF also monitors how the countries implement the G20 recommendations.
The Group of Twenty (G20) is an international forum for the governments and central bank governors from the world’s largest economies. G20 was formed in 1999 and comprises of 19 countries and the European Union. The 19 countries are Argentina, Australia, Brazil, Canada, China, Germany, France, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, and the United States. The purpose of the forum is to plan and discuss economic and financial matters, as well as coordinate policies on matters of mutual interest.