The G20 members are set to accept digital payments as soon as November 2020, according to the Japanese media outlet, Kyodo News. This shift in attitude towards crypto assets coincides with increasing interest by oversight bodies.
Last year, the G20 was skeptical on digital assets' ability to impact current financial ecosystems, this now seems to have changed as the members prepare for the annual summit to be held in Riyadh, Saudi Arabia.
Kyodo News detailed that the change in tact towards crypto ecosystems has been influenced by Facebook's Libra proposal and China's digital yuan. These two projects hit the crypto scene with a bang, fueling discussions across the board.
While China's digital yuan is at its sunrise phase, Libra is still facing regulatory challenges. Nonetheless, the G20, which comprises 20 members, including the EU, has seen it fit to lay a framework for digital assets as well.
The changes in policy are scheduled to take effect as of October, just before the G20 annual summit. Discussions will revolve around digital currency use, money-laundering risks, and the challenges of using crypto as a form of payment. With such groundwork in place, G20 is optimistic about spreading the risk attributed to stablecoins as per an October 2019 report.
Global Progress in Digital Asset Frameworks
China continues to lead the way in CBDC progress, having recently piloted a digital yuan. The Asian superpower is now looking to integrate this PBoC backed digital currency with its existing financial ecosystem. Going by China's active use of mobile payments via Alipay and WeChat, stakeholders are optimistic about a seamless integration in a move that will enhance the CCP oversight in digital payment networks.
The EU has made some fundamental progress in this field, especially in regulation. Currently, crypto-oriented businesses operating within its jurisdiction have to comply with the 5AMLD, which came into play earlier this year.
However, this framework has not been very friendly to all crypto-based entities as some had to relocate shops in search of more accommodating digital asset laws. Finally, the U.S, which has long been skeptical, are also looking into digital assets. CFTC Chairman, Heath Tarbert, recently said that they are waiting on the SEC guidance to go ahead with listing more crypto derivatives in the U.S market.