Reports from the G20’s latest meeting in Argentina state that the group is interested in the implications of cryptocurrencies, along with how they can be beneficial to the global economy. While the group states it has some concerns, such as the ability for cryptos to be used in a variety of negative ways – tax evasion, money laundering, and financing terrorism. Malta – which isn’t part of the G20 – has recently pushed a series of three crypto-friendly bills into law that could lay the foundations for other nations to follow suit.
The Group Remains Quiet on Further Details
In meetings of this magnitude, how the group will move forward with the crypto world is still unclear. But, they did mention in the report that the Financial Action Task Force (FTAF) will be looking into cryptos further. This could imply that at the next meeting of the G20 in Osaka next year we could see a detailed report from the FATF. Perhaps the group will commit to an action plan, but that does appear slightly optimistic at this point. During this time, the crypto world will develop significantly, and more countries will join Malta in introducing crypto laws that could do most of the work in testing the waters for the G20.
Cryptocurrencies Aren’t All Dangerous
Except for a small handful of coins – such as Monero and ZenCash – cryptocurrencies are actually not that anonymous. There is a publicly available record of every transaction made. This means that basic KYC checks are placed on every exchange and wallet, governments could then prevent money laundering, funding of terrorism, tax evasion, and pretty much any illegal activity with most cryptos via such means.
Cryptos Could be a Solution to Economic Downturn
In times of economic hardship and hyperinflation, cryptocurrency could be the solution. Given the G20’s stance it’s safe to say the group recognizes this too. In Venezuela the national fiat currency – the bolivar – has been devalued so much, one dollar is worth 119,900 bolivares. The locals have been turning to Bitcoin as a solution, and the government even created its own oil-backed cryptocurrency – the Petro. Similarly to Venezuela, Nigerian business owners are starting to only accept Bitcoin, thanks to the falling value of the Naira. It is interesting how two nations are turning to cryptocurrencies in time of economic hardship, adding more weight to the argument for making cryptos a set of globally recognized currencies.
The G20 still has a long way to go before they will announce their stance on cryptocurrencies and blockchain technology. However, the fact they mentioned it during this meeting implies it’s something they are aware of and looking into. This is great news for the crypto sphere and will hopefully increase the positive sentiment surrounding most cryptocurrencies of late.