G20 Countries Agree to Support Virtual Currencies

Over 55 Senior Finance Ministers and Central Bank Governors met on July 21 and 22 to discuss economic cooperation in global economic policies. Digital currencies and cryptocurrencies were among the topics on the agenda. The participaants for the U.S. were Steve Mnuchin, Secretary of the Treasury, and Jerome Powell, Chairman of the Federal Reserve, who both report directly to the U.S. President. In the G20 press conference on July 22, the President of the Central Bank of Argentina gave a statement about how the G20 countries expressed their full support for digital currencies during the meetings. They focused on how digital currencies provide technological benefit, increase financial inclusion (especially in less developed countries), and do not represent a global risk to the financial system. The G20 countries also expressed their desire to reduce digital currency use for illegal activities (presumably for things like fraud and terrorist activities).

Read the full statement below (translated to English):

“We discussed a lot about financial regulation and financial inclusion, and here we really focused on the new technologies with all the benefits entailed, and also of course to monitor the eventual risks. We talked about the crypto assets and the cryptocurrencies. The consensus showed that they don’t represent a global risk on the financial system, but of course, as I said before, we really took into account that given the fact that these are technologies that are only beginning, that are in their infancy, we have to really control them and also survey everything that has to do with illegal activities. Now, regarding the financial inclusion, there was full consensus reached, and of course that financial inclusion contributes to growth and the improvement of the standard of living of all the citizens. There is full support of this topic and we focus especially as the Minister said on the digitalization and the benefits entailed by it, especially in less developed countries where the informal economies represent an important percentage of the economy. So digitalization will be a first step towards formality, and also always under the assumption of monitoring everything that has to do with customer protection, and as I said before, also check in any kind of illegal activity. That is essentially the summary.”