The International Monetary Fund (IMF) officials, led by Managing Director, Kristalina Georgieva, have underscored the importance of digital assets in shaping a sustainable and prosperous global economy following the conclusion of the 2023 G20 Summit which took place in India.
“More work lies ahead, including in the realm of digital money and crypto assets. To this end, the G20 has tasked relevant institutions to improve regulation and supervision of crypto assets – the IMF is contributing to proposals for a comprehensive policy framework; and advance the debate on how central bank digital currencies could impact the global economy and financial system.”
Earlier in June 2023, Georgieva revealed that the IMF is actively developing a platform dedicated to facilitating transactions involving central bank digital currencies (CBDCs) between different countries, though it is not clear if this was discussed at the summit.
However, Reuters reported that the IMF and G20’s Financial Stability Board (FSB) submitted a paper on digital assets for discussion during day 2 of the 2023 G20 2023 summit.
As per reports from New Delhi, IMF Deputy Managing Director, Gita Gopinath, said a shared set of principles has been agreed upon among the leading world economies.
#G20 | 2023
" When it comes to monetary issues, one of the clear statements is 'do not legalize the use of any crypto asset like #Bitcoin for legal currency because that would affect monetary sovereignty."
– @GitaGopinath, First Deputy Managing Director, @IMFNews pic.twitter.com/ng38vUL8Zf
— BitKE (@BitcoinKE) September 11, 2023
One pivotal principle is to refrain from legitimizing the use of cryptocurrencies such as Bitcoin as official legal tender, as doing so could jeopardize a nation’s control over its monetary policies. Regarding financial stability, the guidelines propose the licensing and registration of cryptocurrency asset issuers, emphasizing the importance of treating comparable activities and associated risks consistently.
Moreover, the Crypto-Asset Reporting Framework (CARF) was discussed to enable information exchange among countries starting from 2027.
“We call for the swift implementation of the Crypto-Asset Reporting Framework (CARF) and amendments to the CRS [Common Reporting Standard]. We ask the Global Forum on Transparency and Exchange of Information for Tax Purposes to identify an appropriate and coordinated timeline to commence exchanges by relevant jurisdictions,” stated a consensus declaration signed by G20 leaders.
Gopinath emphasized that although a shared set of principles has been established, there is ongoing work required to formulate detailed regulations. Crucially, she mentioned that ‘there is no discussion of prohibiting cryptocurrencies,’ indicating a global consensus against taking such measures.
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