- G20 intends to create a standard framework to assist all nations in managing the risks connected with cryptocurrency.
- The G20 also seeks to unite the world’s economy in the fight against hyperinflation and debt distress in developing nations like Sri Lanka and Ghana.
The G20, an intergovernmental forum of 19 nations plus the EU, intends to create a standard framework to assist all nations in managing the risks connected with crypto investments.
A concept advanced by the nation’s finance minister, Nirmala Sitharaman, was adopted by the G20 while India held the presidency. Sitharaman, however, thinks that fragmented reforms will not effectively address the global reach of cryptocurrencies because of the effects that various ecosystem collapses have on investors worldwide.
Speaking in Washington, DC, at the Peterson Institute for International Economics, she emphasized the various cryptocurrency crashes while highlighting the requirement for a concerted effort from all jurisdictions:
“Cryptocurrencies are a very important part of the discussion under the #G20India presidency, given so many collapses and shocks in cryptocurrencies. We seek to develop a common framework for all countries to deal with this matter.”
Sitharaman revealed the G20’s objective to unite the world’s economy to combat debt distress and hyperinflation in developing nations like Sri Lanka and Ghana. Regarding this, she stated:
“In G20, there is an opportunity for India to bring all countries together to address debt distress in middle-income and low-income countries. Multilateral institutions are coming up with resolutions for debt-laden countries in 3 to 5 years’ time.”
On November 30, 2023, India’s G20 presidency will come to an end, giving the group of 20 countries only seven months to develop broad crypto reforms that may be applied in all jurisdictions.
On the other hand, El Salvador‘s previously troubled economy demonstrated the significance of a resource like Bitcoin in minimizing the effects of hyperinflation and reliance on the US dollar.
The universal payments interface (UPI), an indigenous payment system developed in India, is also growing. To enable quick cross-border payments, Singapore’s PayNow rapid payment system recently integrated UPI. It was claimed at the time of the announcement that the State Bank of India, Indian Overseas Bank, Indian Bank, and ICICI Bank will enable outgoing remittances, and Axis Bank and DBS Bank India will assist incoming remittances.
According to World Bank President David Malpass, the poorest countries in the world owe USD 62 billion in annual loan payments, up 35% from USD 46 billion in 2021, increasing the risk of default. Malpass added that middle-income nations are now experiencing debt crises and are in high danger of or already experiencing financial hardship.