The G20 meeting was held on 21st and 22nd July 2018 and although so much was expected of the meeting with particular regards to virtual currencies and the technology that underpins them, not much was forthcoming. However, through a statement issued on the last day of the meeting, the G20 agreed that crypto-assets technology can deliver significant benefits to the financial system.

According to the statement, “technological innovations, including those underlying crypto-assets, can deliver significant benefits to the financial system and the broader economy.” however, the financial ministers noted that cryptocurrencies “raise issues with respect to consumer and investor protection, market integrity, tax evasion, money laundering, and terrorist financing.”

Regarding the effects of digital currencies on the financial system, the G20, which comprises of finance ministers and central bank governors, reiterated that cryptos do not “at this point pose a global financial stability,” but the G20 vowed to “remain vigilant.”

The group also gave the Financial Action Task Force (FATF) until October 30th “to clarify how its standards apply to crypto-assets.” the FATF is developing rules that will govern the global Anti Money Laundering (AML) regulations to curb against laundering money using virtual currencies. The G20 had in March requested the FATF to develop global AML standards.

Additionally, the G20 welcomed any suggestions from the Financial Stability Board (FSB), an international organization focusing on financial practices and polices. The FSB is comprised of leaders and organizations in the financial market. The FSB focusses on Initial Coin Offerings, price volatility, among others. The FSB had earlier presented a guideline on the best ways to monitor virtual currencies.

Japan being the most strict on cryptocurrency regulations, has however indicated that it cannot individually deal with money laundering malpractices but will need the concerted efforts of all the G20 member states.

With the G20 admitting that crypto-assets technology can deliver significant benefits to the financial system, do you think they may be preparing the financial sector for technology?

Let us know your thoughts in the comments section below.