Paving the way for a co-ordinated global approach to regulating cryptocurrencies, strengthening multilateral development banks’ lending capacity and replicating the use of digital public infrastructure like the India Stack to expand financial inclusion around the world, were some of the 10 major outcomes achieved under the Finance Track of India’s G-20 presidency.
Finance Minister Nirmala Sitharaman said that the Indian presidency has crafted solutions that resonate with each member, offering a shared path forward for all and leaving no one behind. “Many action-oriented outcomes of this presidency contain comprehensive strategies that cater to the unique needs and aspirations of all developing nations,” she emphasised.
G-20 Summit 2023 Sept. 9 updates
Discussions on the regulation roadmap for cryptocurrencies and the bolstering of multilateral development banks’ (MDBs’) capacity will continue in Morocco next month, when the G-20 Finance Ministers and Central Bank Governors will meet in Marrakech for the International Monetary Fund (IMF) and World Bank autumn meetings.
Ms. Sitharaman identified “laying the building blocks for a globally co-ordinated and comprehensive policy and regulatory framework for crypto assets” as a significant outcome. “The global push for a clear policy on crypto assets has gained momentum under the Indian presidency, and a global consensus is emerging on the same,” she said.
The New Delhi Declaration adopted by the G-20 leaders noted that they “continue to closely monitor the risks of the fast-paced developments in the crypto-asset ecosystem” and endorse the Financial Stability Board’s (FSB’s) recommendations for the regulation, supervision and oversight of crypto-assets activities and markets and of global stablecoin arrangements.
Meeting the demand
The G-20 leaders also reached an agreement on the need for “better, bigger, and more effective MDBs” because the developmental demands from around the world are so high, the Finance Minister said, adding that this will enhance the representation and voice of the developing countries in these institutions’ decision making.
“The endorsement of a G-20 roadmap for implementation of recommendations of an independent panel on the capital adequacy framework of the MDBs can help them use their existing resources effectively and potentially yield additional lending headroom of approximately $200 billion over the next decade. So India has harnessed the opportunity provided by the G-20 presidency to effectively articulate and embed the priorities of the Global South in the larger global conversation on MDB reforms,” she underlined.