Riyadh G20 Meeting reviews Stablecoins & global cross border payments
G20 meeting called on FATF to review regulation of stablecoins and the roadmap to enhance global cross border payments
After the G20 meeting that was held in Riyadh on February 22nd and 23rd, a communique was released that discussed the topics being discussed at the meeting. While the attendees stated their committnment to monetary policies consistent with central bank madats, we well and emphasis on the importance of international trade and investment and the conclusions of Osaka summit. They also reaffirmed their commitment to ensure a stronger global financial safety net with a strong, quota-based, and adequately resourced IMF at its center.
The members believe that the potential benefits of more widespread use of technology in infrastructure are substantial. Accoridng to the communique, It improves investment decisions over the lifecycle, enhances value for money of infrastructure projects, and improves the efficiency in building, operating and maintaining quality infrastructure for the delivery of better social, economic and environmental outcomes. They agreed to develop an Infrastructure Technology (InfraTech) Agenda to support the utilization of technology in infrastructure.
Most importantly the G20 meeting in Riyadh reiterated the view that technological innovations can deliver significant benefits to the financial system and the broader economy and we support the work on framing supervisory and regulatory issues for the digital era.
As stated in the comminique “Accordingly, we welcome the inclusive approach of utilizing the FSB’s regional consultative groups, involving also the respective financial regulation standard setters, to consider the implications associated with the growing entry of BigTech in finance. We also ask the FSB to report on the different approaches to technology-enabled-solutions for regulation and supervision (RegTech and SupTech). We remain vigilant to potential risks arising from financial innovations, including those risks related to financial stability, consumer and investor protection, anti-money laundering (AML) and countering the financing of terrorism (CFT) as well as their macroeconomic implications, including monetary sovereignty issues.”
In addition the statement goes on to say, ” Building on the 2019 Leaders’ Declaration, we urge countries to implement the recently adopted Financial Action Task Force (FATF) standards on virtual assets and related providers. We reiterate our statement in October 2019 regarding the so-called ‘global stablecoins’ and other similar arrangements that such risks need to be evaluated and appropriately addressed before they commence operation, and support the FSB’s efforts to develop regulatory recommendations with respect to these arrangements. To that end, we look forward to reports by the FSB, IMF, and the FATF and welcome the FATF’s statement that its AML/CFT standards apply. We recognize the need to enhance global cross-border payment arrangements to facilitate lower-cost and swifter transfers, including for remittances. We ask the FSB, in coordination with the Committee on Payments and Market Infrastructures (CPMI) and other relevant standard-setting bodies and international organizations, to develop a roadmap to enhance global cross-border payment arrangements by October 2020.”