G20 Urges Countries to Adopt FAFT Crypto Standards

The G20 group has urged countries to push for wider adoption of crypto standards set by the Financial Action Task Force (FATF), an international money-laundering watchdog.

February 24, 2020 | AtoZ Markets – G20’s first meeting for 2020 finally happened, with Governors for central banks, as well as finance ministers congregating in Riyadh, Saudi Arabia. The conference, held on the 22nd and 23rd of February, had subjects like Facebook’s Libra, crypto as a whole, and stablecoins be crucial matters of discussion.

Coronavirus and crypto being focused on

Through the Communique that G20 had released after the meeting’s second day,  the heavyweights of global finance predicted a worldwide growth in economies during the years 2020 and 2021. The growth, according to the finance chiefs, will be considered modest. However, G20 stated that it would start to increase its global risk monitoring. Of this, the COVID-19 virus outbreak is at the top of their list. In particular, G20 noted that the coronavirus still has downside risks associated with the outlook of it.

When it comes to cryptocurrencies, in particular, G20 has started to urge countries across the globe to implement the standards the FATF has established. G20 plans on building the 2019 Leaders’ declaration through the new adoption.

Urging further FATF standards adoption

Back in June of last year, the leaders of G20 held a meeting in Osaka, Japan. From there, the group had declared their mutual commitment to following the standards for crypto assets, as well as related services, that the FATF had set up. By October, the FATF had already started an evaluation process in regards to how well various countries have implemented their multiple recommendations.

Furthermore, the G20 meeting had taken a moment to address stablecoins adequately. Through a public statement, they doubled down on their previous October 2019 statement in regards to “global stablecoins,” as well as other systems working similarly. The G20 considers the entire subject matter to be in need of further evaluation before it becomes appropriately addressed. In the meantime, the G20 supports the FSB in its efforts to develop regulatory recommendations when it comes to stablecoins.

China looking to launch stablecoin

The G20 holds the belief that stablecoins hold the potential to serve as a global currency. This can be seen by the potential of Facebook’s Libra presents. Another key player with the possibility of launching a global stablecoin is none other than China.

The country was in the process of a pilot program. However, the COVID-19 crisis more than likely threw a spanner in the works. If the state is capable of bouncing back fast enough to remain in the lead is up for debate. As it stands now, however, things aren’t looking good for China.

What do you make of the G20 support for FAFT Crypto Standards? Let us know in the comment section below.

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