Joint-Communique

The joint communique of the G20 FMCBG paves the way for the future of crypto assets

The G20 Finance Ministers and Central Bank Governors (FMCBG) adopted the roadmap outlined in the Synthesis Paper as a G20 Roadmap on Crypto Assets and pledged to collectively mobilize more headroom and concessional finance to increase the World Bank's capacity to assist low- and middle-income countries in meeting global challenges in a joint communique released on Friday in Marrakech, Morocco, under India's presidency.

"In the spirit of #OneEarthOneFamilyOneFuture and following full consensus by the #G20 members, the fourth #G20 Finance Ministers and Central Bank Governors communique was adopted today in #Marrakech, Morocco," according to a tweet from the finance ministry. While praising the G20 Independent Expert Group's report on bolstering Multilateral Development Banks (MDBs), the communiqué stated that radical adjustments to MDBs' missions, business practices, and financial capabilities are necessary.

Going forward, we request the International Financial Architecture Working Group to consider the IEG recommendations in consultation with MDBs and offer a course of action for better, bigger, and more effective MDBs, including suggestions for how to improve systemic collaboration, at our meeting in April 2024. The FMCBG has demanded the prompt and coordinated implementation of the G20 Roadmap for crypto assets, including the implementation of policy frameworks, outreach outside of G20 jurisdictions, international coordination, cooperation, and information sharing, as well as the filling of data gaps.

"To achieve our shared objectives of macroeconomic and financial stability and to ensure effective, flexible, and coordinated implementation of the comprehensive policy framework for crypto assets, we need this detailed and action-oriented Roadmap." The synthesis note published last month emphasized the need for a clear tax treatment of crypto-assets and gave governments advice on how to protect their countries' monetary sovereignty. The report stated that deciding to ban something is not a "easy opanion" and added that strong macroeconomic policies should not be replaced by temporary limitations.

The Financial Stability Board and International Monetary Fund have also been requested by the FMCBG to provide regular and structured updates on the status of the G20 Roadmap on Crypto Assets during their fourth and last meeting under the Indian Presidency. Private capital mobilization, enhancing their financial capability, particularly by putting the recommendations from the capital adequacy framework into practice raising capital, and encouraging MDBs to collaborate as a system are the three building blocks that the FMCBGs have asked for consideration withabouts.

According to a news release, the FMCBG communiqué was inspired by the G20 New Delhi Leaders Declaration (NDLD) and greatly benefited from the agreement struck at the Leaders' Summit. This is the first communique under the Finance track during India's G20 presidency. The FMCBG has also endorsed the G20/World Bank report on Enablers of Inclusive Cities: Enhancing Access to Services and Opportunities, which analyzes how inclusivity varies across cities globally and presents a policy compass for various stakeholders to better plan, connect, and finance the delivery of urban infrastructure services. On the topic of the Russia-Ukraine war, the communique takes a neutral stance.