G20 leaders have issued a global statement on global stablecoins, which cannot operate without proper regulation. The blockchain theme and central bank currencies were also mentioned by the leaders.
Meeting in Rome, Italy, the main world leaders participated on October 30 and 31 in the 16th G20 Summit, among which even the president of Brazil, Jair Bolsonaro, was present.
Among the various discussions that the leaders had, issues of economics, health, among others. The G20 summit is already scheduled for the next three years, due to take place in Indonesia in 2022, in India in 2023 and in Brazil in 2024.
G20 says global stablecoins should not operate without legal requirements
In an open letter to the world community, the G20 leaders made clear the points on which they expect change in society and how they must work to make it happen.
One of the issues then was cross-border payments, which have “ambitious targets” to be met by 2027, and must face the challenges of cost, speed and transparency.
At this point, the leaders issued a warning against so-called global stablecoins, which cannot start operating without legal requirements being passed.
“We reiterate that none of the so-called “global stablecoins” should begin to operate until all relevant legal, regulatory and supervisory requirements are adequately met through proper design and adhering to applicable standards.”
The leaders further stated that the high-level recommendations of the Financial Stability Board (FSB) are complied with by jurisdictions in order to make necessary adjustments in their countries to meet the recommendations.
G20 says central banks should create digital currencies, with support from the World Bank, IMF and BIS
Another debate on border payments held at the 16th G20 Summit was on central bank digital currencies, called CBDC. According to the statement by the G20 leaders, published by the Ministry of Foreign Affairs in Brazil, the subject should advance in the countries, with the support of the World Bank, IMF and BIS.
“We encourage the Payments and Market Infrastructures Committee, the Innovation Center of the Bank for International Settlements, the IMF and the World Bank to continue to deepen their analysis on the potential role of central bank digital currencies in improving cross-border payments and their broader implications for the international monetary system”.
In the context of the digital economy, the G20 still calls for blockchain technology to be used to ensure product tracking, offering consumers more protection.
The debate also extended over cybercrime, in particular ransomware, which has drawn attention from around the world. Themes such as International Taxation, employment and social protection, among others, were discussed by the leaders, who meet again in 2022 to present developments in the themes in their countries.