G20 to discuss about developing a roadmap to support CBDCs

This year G20 will focus on discussing about supporting CBDCs that several countries plan to launch.

By · Oct 13, 2020 . 6min read

G20 to support CBDCs news

According to a blog post, a video conference will be held on the 14th by the finance ministers and central bank governors of 20 countries and regions (G20). The video conference will include discussions about digital currencies (CBDC) that various countries central banks are researching on. It will also discuss providing additional support for developing countries with financial problems.

Economic impact due to Covid-19

In an interview, Mitsumaru Kumagai, Chief Economist, Yamato Research Institute, says about the effects of COVID-19 on the economy. Economic activity was provisionally postponed due to lockdown. He says that a state of emergency was evident due to the outbreak. However, the economy is recovering from the dire circumstances. He further elucidates the topics with an emphasis on G20 this year.

The first topic would include discussing debt difficulties and international taxation in emerging countries. Regarding developing country issues, the purpose is to reaffirm the necessity for all creditors to participate. He further says that the global financial markets are connected, and limiting the occurrence of a financial crisis by delaying debt repayment to emerging countries is of great advantage to Japan as well.

Moreover, he explains the reason behind the increase in debts of each country. He says that taking preventive measures against Covid-19 results is rising debts. He elaborates that both sustainability of socio-economic activities and the inhibition of the spread of infection is complete.

G20 to discuss promoting CBDCs?

Kazuo Kadoma Mizuho Research Institute’s Executive Economist in an interview said that digital currency regulations are unclear. He further states that the principal agenda at the G20 would be to discuss supporting digital currencies. Moreover, he elucidates his expectations from G20. He says that globalization has decreased due to the influence of the new coronavirus. Still, it is essential to continuously exchange opinions among multiple countries to respond in the event of a significant shock. Furthermore, China is ahead in the central bank’s digital currency.

He also states that Facebook’s Libra is attracting all the attention. FB’s Libra plan raises a feeling of crisis about the opportunity of private currency issuance in each country. However, discussions about regulations on digital currencies are in line. Nevertheless, due to variations in the positions of participating countries in the G20, it is unclear how in-depth the debate over regulations will be.

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