G20 Backs Clearer Crypto Rules as Stablecoins and Cross-Border Payments Take Center Stage

G20 finance ministers and central bank governors agreed on working toward improving the clarity of regulatory and supervisory frameworks and tools on digital assets, among other priorities for financial stability and improvement of payment systems. Their meeting was held Aug. 31-Sept. 1 in Asheville, North Carolina, under the United States G20 presidency.

In the Chair’s Statement, officials acknowledged the benefits of digital financial innovation, including digital assets, for inclusive growth. Members committed to supporting the development of responsible and balanced regulation that preserves financial stability and promotes growth and enables sound innovation, including by considering issues related to cross-border market opportunities and financial stability risks.

Regarding stablecoins, the G20 anticipated the Financial Stability Board’s forthcoming reports on the cross-border impacts of global stablecoin arrangements as well as stablecoin data sources, availability and possible data gaps. The statement did not create a common licensing regime or equivalent stablecoin regulatory framework for the member jurisdictions.

The approach also allows national authorities to pursue appropriate regulation while providing space for international authorities to engage with risks that fall within an international scope. Moreover, cross-border dimensions of stablecoin activity are especially relevant because, unlike fiat money, tokens can be moved across users and markets without relying on traditional cross-border banking networks.