In the wake of the recent G20 virtual summit, global leaders have reached a consensus on a comprehensive strategy to regulate cryptocurrencies. Finance Minister Nirmala Sitharaman led the briefing today, outlining a plan that aims to mitigate financial risks associated with digital assets, particularly in developing nations. The agreed-upon approach is designed to be consistent with guidance from the International Monetary Fund (IMF) and the Financial Stability Board (FSB), focusing on regulation as a means to manage risk rather than outright prohibition.
The summit's outcomes included unanimous support for five key financial initiatives:
- Reinforcing the role of Multilateral Development Banks (MDBs) in global finance.
- Enhancing digital financial inclusion infrastructure.
- Establishing a solid framework for cryptocurrency oversight.
- Allocating resources towards climate finance.
- Funding infrastructure development for future cities, in line with the objectives set during the New Delhi declaration in September.
The United States has called for an increase in funding for the World Bank, while Germany has committed new capital to boost the World Bank's lending capabilities. These developments indicate a global commitment to addressing emerging financial challenges while fostering sustainable economic growth.
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