Finance Minister Nirmala Sitharaman has said India’s G20 Presidency aims to develop a Common Framework for all countries to deal with risks associated with cryptocurrencies in the wake of the recent shocks witnessed in the crypto market.

The last years episode of FTXs bankruptcy, and its spat with Finance 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

Cryptocurrencies are a very important part of the discussion under the G20 India 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 Peterson Institute for International Economics here.

The World Bank and IMF are also holding a round table 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.

Last Year Data

In December last year, World Bank President David Malpass said the worlds poorest countries owed USD 62 billion in annual debt service, a 35 per cent growth over USD 46 billion in 2021, triggering a higher risk of defaults. Malpass also said low-income countries are at high risk of debt distress or are already in it and debt crises are also spreading to middle-income countries.

Under the G20 presidency, India has been pressing for ways to tackle the aggravated debt vulnerabilities facing developing nations mainly on account of the continuing geopolitical tensions and the pandemic. It is feared that if left unaddressed, the mounting debt vulnerabilities of developing nations could trigger global recession and push millions to extreme poverty.

Sitharaman also said, India is carrying forward agendas of earlier G20 presidencies, bringing issues on table that India considers important and also making way for the future G20 presidencies to build upon the legacy of G20 India Presidency.

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