Finance Ministers of G20 nations and their Central Banks counterpart issued a communiqué yesterday after a meeting in Buenos Aires, Argentina. They say:
“Technological innovations, including those underlying crypto-assets, can deliver significant benefits to the financial system and the broader economy.
Crypto-assets do, however, raise issues with respect to consumer and investor protection, market integrity, tax evasion, money laundering and terrorist financing.
Crypto-assets lack the key attributes of sovereign currencies. While crypto-assets do not at this point pose a global financial stability risk, we remain vigilant.
We welcome updates provided by the FSB and the SSBs and look forward to their further work to monitor the potential risks of crypto-assets, and to assess multilateral responses as needed.
We reiterate our March commitments related to the implementation of the FATF standards and we ask the FATF to clarify in October 2018 how its standards apply to crypto-assets.”
The Financial Action Task Force (FATF) standards refer to requirements for anti-money laundering (AML) and know your customer (KYC) ID checks when moving money.
Unlike sovereign currencies, cryptos are decentralized. They are not backed by taxes or stealth taxes through inflation, therefore obviously lack the attributes of sovereign currencies, but overall the communiqué seems balanced with the only thing ministers can agree on seemingly being AML requirements.