New Delhi, (Samajweekly) Finance Minister Nirmala Sitharaman on Friday said that in the next G20 presidency (which will be led by Brazil), crypto roadmap discussions will include monitoring and implementation of regulatory aspects, information sharing, and how it will be taken beyond the G20.
Addressing a press conference in Morocco’s Marrakesh on the sidelines of the G20 Finance Ministers Central Bank Governors meeting and the IMF-World Bank annual meeting, she said that the G20 FMCBG meeting was mandated to discuss the roadmap for crypto assets laid by the New Delhi IMF-FSB paper, adding that the members have adopted the G20 roadmap on crypto assets.
Global cooperation, information sharing and addressing data gaps are part of the suggested roadmap for crypto assets as laid out by the IMF-FSB paper. Advocating a comprehensive oversight of crypto instead of a blanket ban, its high-level recommendations include cross-border cooperation and information sharing between regulators, a demand for comprehensive governance and risk management frameworks for crypto companies, and a guarantee of access to relevant data provided by companies to the authorities.
According to the paper, the first review of the proposed measures’ implementation status should happen by the end of 2025.
In October, the IMF had published another working paper titled “Assessing Macrofinancial Risks from Crypto Assets”.
In it, IMF researchers had suggested a crypto risk assessment matrix for countries to spot indicators and triggers of potential risks in the sector.
Meanwhile, Sitharaman also said that at the FMCBG meeting, discussions were held on why managing debt vulnerability is a prime concern.
Expressing optimism on emerging economies, she said that the popular belief is backed by data that developing economies will be the engine of growth.
“Sustained growth momentum is seen in emerging economies. I find clear signals towards growth as a positive contagion to other terrains,” she said.
On the current geopolitical situation, Sitharaman said that recent crisis in the Middle East and concerns on fuel are back again and several nations expressed concerns over these during the FMCBG meeting. “As such, fuel concerns, food security, and fragmentation of supply chains might become concerns going ahead. However, the Middle East economic corridor is long-term despite short-term glitches. We will continue holding discussions with stakeholders,” she said.
Touching upon Sri Lanka’s debt crisis, Sitharaman said that the island nation is now on the verge of becoming a low-income country.
“Sri Lanka earlier couldn’t qualify to be addressed under a common framework because it was a middle-income country at that time,” she added, noting that its debt resolution is working at a speedy pace.
She further informed that addressing financial inclusion had considerable interest from ministers towards building efficiency gains and smooth governance, in the meeting.
“The Independent Evaluation Group’s (IEG) report has focussed upon encouraging multilateral development banks (MDBs) for private capital mobilisation, to explore options to build MDB financial capacity, and encouraging MDBs to work as a system.
“India will work with Brazil (the next G20 presidency holder) to work towards progress of IEG recommendations,” she said.
“Advancing financial gains via DPI, managing global debt vulnerability, strengthening MDBs, challenges arising out of digitalisation have been discussed in detail in G20 during the Indian presidency,” Sitharaman said.
Focussing on Morocco, she said that investments from India have been happening in Morocco in the pharma sector. “Morocco has been the biggest supplier of phosphoric acid and phosphate to India’s fertiliser sector without disruptions,” Sitharaman added.
