May 29, 2024
Latest Cryptocurrency News

Global Financial Institutions Seek Comprehensive Crypto Payment Data by 2025

According to a joint synthesis paper released by the International Monetary Fund (IMF) and the Financial Stability Board (FSB), global financial institutions are aiming to gather comprehensive “test” data concerning the use of cryptocurrencies for payments by the end of 2025.

The synthesis paper, published on September 7, outlines the desired outcome as having test estimates of cryptocurrency flows and stocks used as payment methods, categorized by type, sector, and counterpart country, by Q4 2025 (October-December 2025).

This synthesis paper was submitted to the G20 members and discussed during a meeting of finance deputies in New Delhi ahead of the Leaders’ Summit scheduled for September 9-10.

The document, prepared by the IMF and FSB at the request of the Indian G20 Presidency, provides policy recommendations and standards to help authorities address the macroeconomic and financial stability risks associated with cryptocurrency activities and markets. This includes risks related to stablecoins and decentralized finance. While it explains how the policy and regulatory frameworks of the IMF and FSB align, it does not establish new policies or recommendations.

What the paper does contain is an ‘implementation roadmap’ for implementing cryptocurrency policy frameworks, one of which pertains to data on cryptocurrency transactions.

The paper acknowledges that the growing presence of new forms of cryptocurrencies used for payments poses various challenges for data collection and analysis, including cross-border usage and currency substitution. Rapid adoption of cryptocurrencies can impact the monetary independence and financial stability of economies, yet data to measure cryptocurrencies and their impact are currently limited.

India, which has advocated for minimum common regulations for cryptocurrencies, has stressed the importance of acquiring cryptocurrency data before enacting any regulatory measures. In December 2022, Reserve Bank of India Deputy Governor T Rabi Sankar emphasized the need to gather cryptocurrency data quickly to avoid formulating the “wrong set of prescriptions.”

According to the synthesis paper, the IMF will be responsible for collecting cryptocurrency data and will collaborate with industry players to obtain data on cryptocurrencies used as payment methods.

The paper also suggests that discussions within the G20 could facilitate cooperation between statistical agencies and regulatory bodies to influence regulations related to data requirements for cryptocurrencies.

Regarding the possibility of a blanket ban on cryptocurrencies, the IMF-FSB synthesis paper cautions that enforcing such a ban would be challenging. It notes that blanket bans on all cryptocurrency activities can be costly, technically demanding, and may increase the incentives for circumvention due to the borderless nature of cryptocurrencies. Additionally, it could lead to activity shifting to other regions, creating spillover risks. The paper emphasizes that a decision to ban cryptocurrencies should be based on a comprehensive assessment of risks and other policy considerations.

Image by Mohamed Hassan from Pixabay

Related posts

South Korea’s Strengthened Sanctions Against North Korea: Tracking Crypto Assets to Disrupt Weapons Funding

Harper Hall

Crafting Worlds: Inside Avalon’s Ambitious Metaverse Game Led by Gaming Veterans

Cheryl  Lee

Japanese E-commerce Giant Embraces Bitcoin Payments Starting June

Kevin Wilson

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Please enter CoinGecko Free Api Key to get this plugin works.