G20 India Chapter: Cryptocurrency Regulation, Tech Transfer Among Key Issues On Table

Carrying forward the philosophy of ‘One Earth, One Family, One Future’, on Saturday, New Delhi will preside over the various heads of the world’s biggest economies under its first G20 presidency. The meeting, which is crucial on various fronts, will witness the absence of Chinese President Xi Jinping and Russian President Vladimir Putin. However, the US-India synergy among other prominent members will be on display.

The G20 members represent about 85 per cent of global gross domestic product, over 75 per cent of the global trade, and about two-thirds of the world’s population.

Barring some hurdles, India’s G20 presidency is likely to register a great achievement as the members of the forum agreed to grant the 55-member African Union permanent membership status. The G20 leaders are expected to announce the decision during the summit, according to the sources familiar with the group.

The newly constructed Bharat Mandapam Convention Centre has been designated as the venue where the 18^th G20 Summit—the premier intergovernmental forum for international economic cooperation—will take place.

What Is G20?

Founded by the world’s 20 major economies in 1999, the G20 group addresses issues that cannot be resolved within a country or require global economic cooperation. The G20 grouping comprises the world's 19 wealthiest countries and the European Union, the world’s largest trading bloc.

The participating members of the grouping are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, and the United States, as mentioned on the official website of the G20.

Other countries that have received the invitation for the two-day summit are Bangladesh, Egypt, Mauritius, the Netherlands, Nigeria, Oman, Singapore, Spain, and the United Arab Emirates.

Apart from the regular International Organizations such as the United Nations (UN), the International Monetary Fund (IMF), the World Health Organization (WHO), the World Trade Organization (WTO), the International Labor Organization (ILO) and the Organization for Economic Cooperation and Development (OECD), the host country has also invited the International Solar Alliance (ISA), the Coalition for Disaster Resilient Infrastructure (CDRI) and the Asian Development Bank (ADB) for the G20 summit.

Key issues Likely To Be Discusses In The Summit

Ranging from cryptocurrency regulation, more loans to developing countries, climate finance and transfer of technology to reforming global debt architecture and the impact of geopolitical tumult fueling food and energy insecurity would likely be on the table of discussion among the who’s who of the world’s leadership at this highly anticipated summit.

At the request of India’s G20 presidency, a policy paper has been prepared by the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to assess the potential impact of cryptocurrencies on nations’ monetary policies.

The policy paper has suggested licencing crypto service providers and called for countries to implement the Financial Action Task Force (FATF) anti-money laundering and counter-terrorist financing (AML/CFT) standards in the sector.

The paper, however, has suggested that a blanket ban might not work given the borderless nature of virtual digital assets. The paper authored by the FSB and IMF will be discussed among the G20 leaders and will offer a roadmap to nations on regulating cryptocurrencies.

Interestingly, the issue of the language to describe the Russia-Ukraine conflict and the failure to release a joint statement or communiqué so far would likely be seen as the bone of contention in the summit. While Russia and China dissent on the matter, which was earlier seen in the meetings held under the finance track of the G20, member countries like the United States, France, and Canada have put forth the demand of registering a strong condemnation in the joint statement.

In order to balance the power equation and reduce the dominance of the developed world, India’s focus has been on the needs and priorities of the countries in the ‘Global South’.  Discussion on the economic growth and development of the region will likely remain one of the major deliverables of the summit.

India will hand over the G20 presidency to Brazil on December 1 this year.