Expect at least discussion on crypto, if not agreement, at G20 meetings: FM Sitharaman

Sitharaman is in Washington, DC for the IMF Spring Meetings, followed by the second meeting of the G20 Finance Ministers and Central Bank Governors.

India expects G20 meetings under its presidency to see discussions on crypto, if not complete agreement on the matter, Finance Minister Nirmala Sitharaman has said. Speaking with Adam Posen, president of Peterson Institute for International Economics, on April 10 in Washington, DC, the minister said the crypto world has seen many collapses and "shocking developments".

"Again, India presidency (is) taking up the cause of a common framework with which all countries can deal with this matter. We are not expecting them to agree to it, but at least discuss it, the IMF and FSB's papers," Sitharaman said.

The comments come ahead of the second meeting of the G20 finance ministers and central bank governors in Washington from April 12 to April 14 following the International Monetary Fund's (IMF) Spring Meetings.

Focus on crypto

In the first meeting in Bengaluru in late February, discussions were held on the subject and it was decided that a joint technical paper would be prepared by the IMF and Switzerland-based Financial Stability Board (FSB). This paper would "synthesise the macroeconomic and regulatory perspectives of crypto-assets" to help formulate policies for the crypto space.

The IMF-FSB synthesis paper will be submitted in September. Before that, in July, an FSB paper on crypto asset regulation will be tabled for discussion at the third meeting of the finance ministers and central bank governors in Gujarat’s Gandhinagar.

As part of the agenda for the second meeting in Washington, a side event will be held on April 14 on the macro-financial implications of crypto assets.

Debt stress

Another key focus of India's G20 presidency is addressing rising sovereign debt distress among low and middle-income countries.

Sitharaman said she was "glad" the IMF and World Bank were now being more open-minded about the process and picking up pace in delivering solutions.

"The delays till now, during the pandemic its excusable, but even before the pandemic – three, four, five years sometimes – for countries to get a resolution from IMF or be able to sit up and say we have some alternatives, is not good enough. And I am glad today the IMF and World Bank are all looking at it with a lot more positive open-mindedness," Sitharaman told Posen.

Asked to comment on the Russia-Ukraine war that was overlapping with India's G20 presidency and dominating discussions at the meeting, Sitharaman said being the president at a "challenging time" was a "great opportunity for India" to prove itself and to work towards bringing all countries together on substantive issues.

"There still can be one or two on which you are not able to get consensus. But there are pressing issues of the world which a forum like G20 will have to address," the Indian finance minister said.

Disagreements on the language describing the Russia-Ukraine war prevented the adoption of a joint statement at the conclusion of the finance ministers and central bank governors' meeting in Bengaluru and the foreign ministers' meeting in New Delhi a week later.

Instead, India issued a chair's summary and outcome document, with a footnote detailing Russia and China's opposition to two paragraphs in the summary that were adapted from the G20 Bali Leaders' Declaration.