By
Bhushan Akolkar
October 13th, 2023
India’s Finance Minister insists that the only way to protect investors worldwide lies in putting concerted efforts into a global framework.
The G20 is presently working on a global framework that will help member nations to deal with risks that may arise from their crypto-related dealings. To this end, the India-led presidency of the intergovernmental group has said that all nations must get on board with the idea of developing a global crypto policy, a local news report claims.
According to India’s Finance Minister Nirmala Sitharaman, countries must come together to achieve this common framework. She strongly believes that individual reforms will just not be enough to address crypto risks. In her speech at the Peterson Institute for International Economics in Washington DC, Sitharaman recalls the various ecosystem collapses of 2022, particularly that of the FTX exchange. She insists that the only way to protect investors worldwide lies in putting concerted efforts into a global framework. The Finance Minister said in part:
“We seek to develop a common framework for all countries to deal with this matter.”
G20 Vows to Combat Debt Distress
While crypto risks are a major cause for concern for the India-presidency G20, hyperinflation and debt distress also draw its attention. In line with this, Sitharaman revealed that G20 also has an eye on bringing global economies together. The aim is to defeat debt distress and hyperinflation, especially in countries such as Ghana and Sri Lanka. Both countries are typical examples of middle-income and low-income nations and boast considerably small economies. Part of her statement reads:
“Multilateral institutions are coming up with resolutions for debt-laden countries in 3 to 5 years.”
Recall that the presidency of G20 is rotated annually. Therefore, India’s G20 presidency is expected to elapse by November 30. As a result, there are still about seven months for the group to carve out a global crypto framework. And it is expected that the framework will be effected in all jurisdictions.
Moreover, the reform will still, in a way, affect hyperinflation as seen with El Salvador – a nation that once had a struggling economy. Through the help of Bitcoin, El Salvador has been able to reduce its hyperinflation and dependence on the US dollar. So while crypto has its risks, its benefits also show that it shouldn’t be totally discarded.