G20 says stablecoin regulations are needed to control risks

by in Cryptocurrency News

The Group of 20 nations

During the meeting of the Group of 20 nations in Osaka, major economies said that stablecoins should be managed to have control over the risks that can arise before any digital currency issues.

Haruhiko Kuroda head of Japan’s Bank said during the briefing: “We must consider appropriate regulations. The worldwide circulations of influential stablecoins can transform the global monetary policy and economic system.”

Kuroda said: “Meanwhile, there was no agreement at G-20 about whether financial policy may be approaching its limits or if the scope is narrowing.”

Related: JPMorgan’s blockchain network will launch in Japan in 2020

In the announcement, finance diplomats and central bank chiefs of G20 said that they assume the possible profits of economic modernisation, and they accept that stablecoins and alike assets with potential systemic footprints give growth to a range of dangerous public policy and regulative risks. These risks include illegal financial actions and money laundering, according to the statement.

Leaders authorised a program under which a consensus on the taxation scheme could be reached in January 2020, with the final release selected by the end of that year.