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The Reserve Bank of India (RBI) has stated that one of India’s presidency’s G20 priorities is “a global regulatory framework, including a possible ban on unbacked cryptoassets, stablecoins and defi.” to develop The Central Bank of India has warned that crypto asset market turmoil is one of the major risks that could undermine global financial stability.
India’s central bank, the Reserve Bank of India (RBI), released its Financial Stability Report (FSR) for December on Thursday. The 172-page report includes discussions on cryptoassets, central bank digital currencies (CBDC), and decentralized finance (defi).
New technologies and business models are difficult to regulate after they have grown to a systematic level, said the RBI report. It is imperative that policymakers design appropriate policy approaches to foster responsible innovation and mitigate financial stability risks in the cryptocurrency ecosystem. increase.
In this regard, one of the priorities under India’s G20 presidency is to develop a global regulatory framework, including a possible ban on unbacked cryptoassets, stablecoins and defi. is to
The central bank listed crypto asset market turmoil as one of the major risks that could undermine global financial stability. The RBI also said crypto-assets are highly volatile, “highly correlated with equities” and declining as inflation rises.
The report further points out that the collapse of crypto exchange FTX and the subsequent plunge in the cryptocurrency market highlighted the vulnerabilities inherent in the cryptocurrency ecosystem. Also focused on the Terra/Luna meltdown in May and the bankruptcy filings of several major crypto companies, including crypto hedge fund Three Arrows Capital (3AC) and crypto lender Celsius Network. is guessing.
India’s Economic Secretary Ajay Seth said earlier this month that G20 members are aiming to building policy consensus Crypto assets for better global regulation. Indian Finance Minister Nirmala Sitharaman said in October that cryptocurrencies would become part of the agenda for India’s G20 presidency, adding that he expected it. A technology-driven regulatory framework For crypto assets it will be established.
The G20 (G20) members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom, United States and the European Union. This group accounts for about 85% of the world’s GDP.
However, India’s central bank has repeatedly recommended banning all state-issued cryptocurrencies such as Bitcoin and Ethereum.Last week, RBI Governor Shaktikanta Das said that cryptocurrencies next financial crisis if they are not prohibited. However, India’s finance minister said in July that Ban Crypto regulations are important international cooperation.
Do you think the G20 will develop global regulations that will benefit the cryptocurrency industry? Let us know in the comments section below.
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