G20 Presidency Focused On Developing Global Framework To Manage Crypto Risks: Nirmala Sitharaman

Sitharaman also expressed concern about the debt vulnerabilities facing developing nations due to geopolitical tensions and the pandemic.

Union Finance Minister Nirmala Sitharaman has stated that India's G20 presidency is focused on developing a common framework for countries to manage risks associated with cryptocurrencies. This comes after recent shocks in the crypto market, including the bankruptcy of FTX and its conflict with Binance, which caused a sell-off and reduced liquidity. Sitharaman highlighted the vulnerability of cryptocurrencies as they lack any underlying value, reported PTI.

During the first meeting of G20 Finance Ministers and Central Bank Governors in February, it was agreed to strengthen multilateral coordination by official bilateral and private creditors to address the deteriorating debt situation in middle-income and low-income countries such as Sri Lanka and Ghana. The World Bank and IMF are holding a roundtable on Global Sovereign Debt, and India's G20 presidency will facilitate discussion and information-sharing on the issue.

Sitharaman also expressed concern about the debt vulnerabilities facing developing nations due to geopolitical tensions and the pandemic. She urged the G20 to address these issues to prevent a global recession and extreme poverty. India is carrying forward the agendas of earlier G20 presidencies and bringing important issues to the table while also paving the way for future G20 presidencies to build on the legacy of India's presidency.

Foreign investments continue to flow into India, according to Sitharaman. She encouraged prospective investors to look at the ground reality rather than rely on perceptions built by those who have not visited the country. The government is focusing on providing basic facilities to citizens and empowering them, with an emphasis on financial inclusion to ensure that everyone has a bank account and direct access to benefits.

Sitharaman believes that emerging markets will bring their views to the forefront during their three consecutive terms as G20 presidencies, beginning with Indonesia in 2022, followed by India in 2023 and Brazil in the following year. This will also give a voice to the Global South in G20 discussions.

In summary, India's G20 presidency aims to develop a common framework for managing risks associated with cryptocurrencies, strengthen multilateral coordination to address deteriorating debt situations in developing countries, and address the debt vulnerabilities that could trigger a global recession and extreme poverty. Foreign investments continue to flow into India, and the government is focused on providing basic facilities and financial inclusion. Emerging markets will bring their views to the forefront during their consecutive G20 presidencies.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.