Digital currency payments may become a reality for G20 members before the next summit in Saudi Arabia. According to Kyodo news, 19 countries from the G20 unit as well as the European Union have accepted that the digital currency wave is unstoppable. This realisation has seen these blocks commence preparations for laying down the foundation of digital currency infrastructure.
Response to the digital Yuan
Changes are expected to begin from around October time probably after the G20 financial meetings in the American capital of Washington DC. Japanese outlet Kyodo has it that the move by the G20 nations is born out of concern following China’s progress in the space. The move is, therefore, a reaction to China’s digital Yuan which they are concerned might dominate the financial world unless another force emerges to keep up with it. The member nations are not just concerned about the digital Yuan, Facebook’s proposed Libra currency is also a thorn in their flesh.
A new stance towards digital currencies
At first digital currencies were seen as a threat to monetary stability, but this stance has since changed among powerful nations and bodies. At the G20 2019 summit in Osaka, leaders stated that cryptocurrencies did not constitute a threat to monetary stability as once believed. They also appeared to laud the technology for the benefits to the economy it could bring. Cryptocurrencies are a breakout technology and thus very volatile though. The volatility issue has been approached by the creation of stablecoins; to earn public confidence. The G20 unit is not a big fan of stablecoins though, they determined in October that they posed a serious threat to public policy and financial regulations.
The move by G20 nations was almost expected because murmurs about a possible digital dollar were being heard. With the world racing towards a crypto adopted era, it only makes sense for the G20 member countries to study what this means and ride the wave before it turns against them.
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