The issue of recognizing cryptocurrencies as an official means of payment became a key topic to which all the attention of members of the G20 summit held in Argentina was directed. The meeting participants decided to develop proposals for regulating digital currencies by July of this year
Also at the G20 meeting, problems of combating international terrorism, changes in the labor market, rising unemployment, tax and financial regulation were discussed. In fact, all the issues discussed related to the use of digital technologies in global financial markets.
As a result, finance ministers decided that cryptocurrencies are currently not capable of simultaneously performing all standard monetary functions: they cannot be used as storage facilities, measures of value, means of exchange and payments. Also, digital currencies cannot be freely exchanged for traditional currency and used in lending.
It is important to note that the heads of central banks of the countries participating in the summit understand that at the moment digital currencies do not threaten the stability of the world economy.
Nevertheless, representatives of world governments recognized that such a risk could arise if a legal framework for regulating cryptocurrency assets is not created in the very near future. Such regulation should prevent tax evasion, money laundering using digital currencies, and will also protect the rights of investors and consumers.
The summit participants unanimously supported the idea of the need to extend FATF standards to digital assets.
You May Also Like
A US Senate subcommittee held hearings on the issue of cryptocurrencies
The US Subcommittee on Monetary Policy and Trade yesterday discussed major issues related to digital currencies. It was assumed that the hearing, entitled “The Future of Money: Digital Currency,” would be significant for the introduction of crypto assets into the economy.
Bitcoin Cash rose 25% in anticipation of the fork
On November 15th, a hard fork could split the BCH network, and crypto companies have begun to weigh the pros and cons of this event. Part of the community supports the version of BCH promoted by the Bitcoin ABC development team, who split the Bitcoin blockchain and created Bitcoin Cash last August. The other part supports the network developed by nChain, associated with Craig Wright and the CoinGeek mining pool.
