They also adopted a road map for the regulation of crypto assets, marking significant progress on India’s G20 agenda. “…The G20 finance track saw key achievements in several areas of India’s presidency year,” said finance minister Nirmala Sitharaman on Friday, briefing reporters on the outcome of the fourth and last G20 FMCBG meeting under India’s presidency.
She listed progress on strengthening of MDBs, advancing financial inclusion and productivity gains through digital public infrastructure, crypto assets agenda, managing global debt vulnerabilities, and financing cities of tomorrow.
The communique adopted a road map on crypto assets based on the synthesis paper prepared by the International Monetary Fund and Financial Stability Board.
It called for swift and coordinated implementation of the proposals.
The FSB recommended regulations rather than an outright ban on crypto assets that would prevent digital currencies from undermining macroeconomic and financial stability. It also called for outreach beyond G20 jurisdictions, global coordination, cooperation and information sharing, as well as addressing data gaps.Sitharaman said the information exchange under the crypto asset reporting framework will start by 2027.The communique underscored the need for continued work on MDBs’ capital adequacy framework (CAF) reforms and encouraged them to collaborate in areas such as hybrid capital, callable capital and guarantees.
They called on the International Financial Architecture Working Group to work with the multilateral development banks and propose, by April 2024, plans to make them “better, bigger and more effective.”
There was overwhelming support from across the membership on the recommendations by the independent expert group headed by 15th Finance Commission chairman NK Singh and former treasury secretary Larry Summers, with many key MDB shareholders agreeing to capital support, an official said.
The board of each MDB will be best placed to determine if and when a capital increase is needed in addition to CAF measures to support efforts in addressing global challenges and meeting development needs, the communique said.