G20 countries discuss risks associated with cryptocurrency and its role in the global economy

The countries of the G-20 consider that the current situation with cryptocurrency does not pose a threat to the world economy. This is stated in a communique issued on Sunday at the end of a two-day meeting of finance ministers and heads of G20 central banks in Fukuoka (Japan).

Nevertheless, a number of risks associated with the use of this type of currency for criminal purposes, remains, representatives of the G-20 believe. The communique says:

“Technological innovations, including those underlying cryptocurrency assets, can bring significant benefits to the financial system and the economy as a whole. Although cryptocurrency assets do not pose a threat to global financial stability at this stage, we remain vigilant against risks, including those related to protecting the rights of consumers and investors, countering money laundering and terrorist financing. ”

Following the meeting, the G-20 countries agreed to strengthen cooperation to increase cyberspace resilience to various hacks by attackers and promised to intensify efforts to combat money laundering and terrorist group financing through the use of cryptocurrencies.

In addition, the parties promised to speed up work to create a more efficient tax system for large digital corporations. We are talking about new tax rules for multinational digital giants, including Amazon, Apple, Facebook and Google. It is believed that with respect to these and other digital corporations, taxation should be based on the countries in which they receive the main profits, and not on where their head offices are located.

The countries of the G-20 also believe that the world economy will stabilize, and its growth will be moderate in the second half of this year, as well as throughout 2020, despite increasing tensions in world trade. Participants promised to “continue to monitor risks and take measures to mitigate them.”

Recall that the "Big Twenty" is a club of governments and heads of central banks of the countries with the most developed and developing economies. In total, the G20 represents 85% of world gross national product, 75% of world trade, and two thirds of the world's population.

The head of the Bank of Russia Elvira Nabiullina and the Deputy Minister of Finance Sergey Storchak took part in the meeting from the Russian side.

Publication date 10.06.2019
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