India G20 presidency aims to develop common framework for crypto risks: Nirmala Sitharaman

economictimes.indiatimes.com:

cryptocurrencies in the wake of the recent shocks witnessed in the crypto market. Last year's episode of FTX's bankruptcy following a spat with Binance triggered a huge sell-off in the market and reduced liquidity. This event made the world realise the vulnerability of this asset class as they do not have any underlying value.

«Cryptocurrencies are a very important part of the discussion under the G20India presidency, given so many collapses and shocks in cryptocurrencies. We seek to develop a common framework for all countries to deal with this matter,» she said at a discussion in the Peterson Institute for International Economics. The finance minister also said G20 is trying to bring together all countries to address debt distress in middle-income and low-income nations like Sri Lanka and Ghana.

During the first G20 Finance Ministers and Central Bank Governors (FMCBG) meeting in February, it was agreed to strengthen multilateral coordination by official bilateral and private creditors to address the deteriorating debt situation and facilitate coordinated debt treatment for debt-distressed countries. The World Bank and IMF are also holding a roundtable on Global Sovereign Debt. Initial discussions happened at the G20 FMCBG meeting in Bengaluru, she said, adding India's G20 presidency will create discussion and sharing of information on this issue and it will be taken forward positively.

«In G20, there is an opportunity for India to bring all countries together to address debt distress in middle-income and low-income countries. Multilateral institutions are coming up with resolutions for debt-laden countries in 3 to 5 years' time,» Sitharaman said. In December last year, World Bank president David Malpass said the