The G20 countries want to set a new benchmark for the acceptance of digital currencies. The efforts of China and Facebook force action.
As the Japanese news portal Kyodo reported at the weekend, the group of the twenty most important industrialised and emerging countries G20 wants to set a new benchmark for the acceptance of digital currencies. A meeting of the G20 finance ministers has already been scheduled for this October in Washington D.C. It is therefore expected that the new regulations will already come into force by then and not just at the next G20 summit in Riyadh, Saudi Arabia.
The G20 states are reacting to the Chinese offensive to push digital currencies, among other things, with their efforts, as is assumed at Kyodo. The digital currency of the Chinese central bank CBDC is currently still in the test phase. At the 2020 Fintech Forum, which was held online, the former member of the board of directors of the People’s Bank of China, Wang Zhongmin, provided an overview of the current situation.
Such plans are not new. At the turn of the year 2019/2020, for the first time from the European Union, it was said that the introduction of an E-Euro would be examined.
G20 reacts to China and Facebook
Both China and the G20 countries will be watching developments on Facebook with interest. The social media platform had announced that it would launch its own cryptocurrencies called Libra before the end of 2020. Facebook boss Mark Zuckerberg has been planning a cryptocurrencies for some time. Last autumn, however, many cooperation partners backed out after numerous experts had criticized Libra’s security criteria.
Facebook has reacted to the criticism and announced a second attempt for this year. The great advantage Facebook has is obvious: with two billion users worldwide, Libra’s potential is immense.
Cryptocurrencies were already an issue at the G20 summit, which took place in Osaka in 2019. The experts agreed that they do not endanger the stability of the monetary system. On the contrary, a healthy development of cryptocurrencies can even help to strengthen a country’s economy. However, the finance ministers agreed that global stable coins should be treated with caution and require stricter regulatory rules. Therefore, the G20 financial summit in October is eagerly awaited. After all, it can be assumed that the Facebook currency Libra will also be offered in the G20 currency area. One aim of the ministers will certainly be to draw up concrete regulations to prevent money laundering. Those responsible also want to promote the fight against the financing of terrorism.