Members of the G20 countries are changing the regulatory framework to accept digital currency payments instead of cash ahead of the upcoming Saudi Arabia Summit.
13 July, 2020 | AtoZ Markets – The G20 is an international forum in which 19 countries and the European Union (EU) central bank governors participate. The G20 gathers throughout the year to hold high-level discussions on macro-financial issues.
Digital Payments May Become Reality for G20
Central banks around the world are exploring the nature and potential of CBDC (Central Bank Digital Currency). Facebook’s Libra has accelerated plans for central banks to implement it. China was ahead in the creation of the digital yuan. So, the G20 was under pressure.
According to the Kyodo News, members of the G20 countries announced that they are likely to lay the new regulations for digital payments. It would effectively allow digital currency payment methods rather than cash. Regulatory debates expect to start in October before the next summit in Riyadh in November. G20 members will discuss the use of digital currencies and the prevention of money laundering.
Discussions about digital currencies have been going on for years at international forums. At the 2019 G20 Summit in Osaka, G20 Members said the digital currencies did not constitute a threat to traditional currency systems due to the size of the market. It noted that technological innovation could bring significant benefits to the economy. However, it said in October that digital currencies constituted a threat.
The EU also calls on the G20 to help strengthen international cooperation on monetary and fiscal policy to combat the COVID-19 crisis. It said, “EU to call on G20 to focus on green, digital opportunities in shaping global post-COVID recovery”. It also added, “EU wants G20 to reconfirm the importance of central bank independence worldwide.”
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