Tech
G20 Summit: How will crypto assets be regulated? Gita Gopinath of the IMF explains the new regulatory framework
As India’s G20 presidency focuses on the regulation of cryptocurrencies, among other things, the International Monetary Fund (IMF) has taken on a key role in shaping the global approach to this issue. In an exclusive interview with Business Today Executive Editor Rahul Kanwal, IMF Deputy Managing Director Gita Gopinath delved into the details of this initiative.
Gopinath began by underlining the importance of this collaboration, underlining that it is not only about regulatory aspects but also about macro-financial consequences. For the first time, the Financial Stability Board and the IMF have joined forces to address cryptocurrency regulation in a comprehensive manner, recognizing the need for a holistic perspective. The primary objective is to identify necessary policy actions that balance regulation and financial stability.
Regarding monetary issues, a key principle is not to legalize the use of cryptocurrencies such as Bitcoin as legal tender, as this could compromise monetary sovereignty. In terms of financial stability, the guidelines suggest licensing and registrations for cryptocurrency issuers, focusing on the consistent treatment of similar assets and risks.
Gopinath stressed that although a set of common principles has been agreed upon, there is still work to be done to develop specific regulations. Importantly, “there is no talk of banning cryptocurrencies, which indicates a global consensus against such measures,” she said.
However, Gopinath expressed concern about the different positions taken by countries regarding cryptocurrency policies. While recognizing the need to adapt regulations to specific circumstances, they underlined the general principles on which most countries agreed.
“We call for the rapid implementation of the Crypto-Asset Reporting Framework (CARF) and changes to the CRS [Common Reporting Standard]. We call on the Global Forum on Transparency and Exchange of Information for Tax Purposes to identify an appropriate and coordinated timeline for initiating exchanges by relevant jurisdictions,” reads a consensus statement signed by G20 leaders.
When asked about the timeline for implementing these principles into policy, Gopinath suggested that the cryptocurrency market will become less like the “Wild West” it has been, with improved data and transparency. The differentiation will take place based on the use of cryptocurrencies for investments or speculative payments.
Gita Gopinath on the Indian economy
As for the Indian economy, Gopinath highlighted India’s role as an engine of global growth, forecasting growth above 6% for the current fiscal year. Public investment and resilient consumer spending were key drivers. However, structural reforms are essential to sustain high levels of growth and attract private investment.
India will be the world’s third largest economy in 2027-28. India will contribute 15% to global growth this year and will be a key driver of economic growth in the years to come, he said.
Gopinath highlighted the need for reforms in labor markets, state-level governance, ease of doing business, quality of education and women’s participation in the workforce. “These reforms are crucial to further boost India’s growth trajectory,” she added.
Addressing concerns about India’s economic growth data, Gopinath said: “There is no reason to doubt the credibility of the numbers. The International Monetary Fund relies on various data sources and high-frequency data to make assessments.”
Watch the full interview below
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