Many countries in the G20 called for the establishment of a strict regulation on crypto-currencies. The G20 is being held this week in Buenos Aires, Argentina. This is a great opportunity for a thoughtful discussion on the subject of digital currencies. However, while the world is far from being agreed.
Rules that are difficult to find
It finally seems that there is little likelihood that the leaders ‘ G20 financial manage to find an agreement on a regulatory framework for crypto-currencies. In fact, the approaches are too different from one country to the other. And this is far from the only problem. In effect, the FSB, that is to say, the Financial Stability Board, is the body that co-ordinates financial regulation in the G20. However, his position regarding virtual currencies is not very clear.
Pixabay – The Digital Artist / The FSB is not worried about the immediate consequences of digital currencies on the world economy.
Indeed, it seems that the FSB sees no real danger in the crypto-currencies. The leader of the FSB, Mark Carney, stated that the foreign currency digital does not represent an immediate risk to the stability of the global economy. It is in a letter addressed to G20 Finance ministers that the latter recalled that at the present time, it was not necessary to worry.
Not to worry currently
Mark Carney was keen to point out that the current market of crypto-currencies is too paltry compared to the international financial system. Digital currencies do not represent, in fact only 1 % of the global GDP on the year 2017. Therefore, one cannot at present talk of danger, all the more that Bitcoin and other digital currencies is not a substitute for fiat currencies.
Pixabay – Geralt / many G20 countries are concerned about the power of crypto-currencies and would like to establish a strict regulatory framework.
For the boss of the FSB, therefore, it seems that to consider a regulatory framework for crypto-currencies is far too premature, because their use is very limited. However, the FSB has been keen to reassure members of the G20, arguing that the agency closely monitors the evolution of crypto-currencies on the market of the global economy.
Therefore, there will be no regulation at the present time in spite of the requests of countries such as Germany, Japan or France.
Source : Stock