Hey All,
Do you know that the IMF-FSB Synthesis Paper on policies for Crypto-Assets was presented at the G20 New Delhi Summit, September 2023. The paper presented can be accessed from fsb.org portal - Here. The paper is 53 pages and consolidates the recommendations from the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to help authorities in identifying, assessing, and mitigating macro-economic and financial stability risks of crypto-assets.
Listening to many delegates on various news channel, they are talking about this IMF-FSB Synthesis Paper on Cryptocurrencies to refer in detail for any questions that journalist have with regards to the crypto framework or the steps the government would be talking in general associated with cryptocurrencies. And I doubt whether the delegates themselves would have gone through the detailed 53 page report and if they were able to grasp everything in the report. Anyways that is a separate topic in itself. Moving further the paper is approved For Circulation By Tobias Adrian (IMF) and The FSB Plenary, so please feel free to read and circulate as the need maybe. I did glance through the paper and thought it would be interesting to talk about the Annex 2 which is about the high-level recommendations recommendations for the regulation, supervision, and oversight of crypto-asset activities and markets.
If you carefully observe the recommended points they are self explanatory and we can clearly make out that there is nothing like complete BAN of cryptocurrencies. Rather talks and recommendation is around providing regulatory powers, tools, framework , cooperation, coordination, and information sharing amongst the countries. The FSB board further highlights around the governance where authorities involved should provide for clear and direct lines of responsibility and accountability for the functions and activities they are conducting. In the paper there are talks around stablecoin that aims to maintain a stable value and is pegged to a dollar. We see graphs of stablecoin market cap and their market share as well in the report.
Global Stablecoins (GSCs) may transmit volatility more abruptly than other crypto-assets and may cause significant risk to financial stability.
Overall, I see the report from IMF-FSB on Cryptocurrencies from a positive angle and the recommendations that are provided are inline to making crypto markets more favorable and at the same time ensuring the users know where they are investing is a highly volatile market so they should know its risks. Plus authorities dealing with crypto assets like exchanges need to adhere to many guidelines as requested by the governing body of the country. But there is a caveat for DeFi and many web3.0 projects like #Hive and many others where decentralization is the guiding principle no such recommendations on controlling these projects can help out. Its for and only for the community and the community decides where it wants to the lead the project ahead.... #hive is the future there is no stoppage whatsoever... .... cheers
#imf #fsb #blockchain #web3 #defi #freedom #finance #decentralization #imf #fsb #cryptocurrencies
Did you happen to go through the entire 53 page paper on cryptocurrencies from IMF-FSB? What are your thoughts in general about the paper? Mass Adoption Vs Hindrance for Crypto Projects? Please let me know your views in the comment section below...cheers
Best Regards
Image Courtesy:: leofinance, fsb.org,
PS:- None of the above is a FINANCIAL Advice. Please DYOR; Do your own research. I've an interest in BlockChain & Cryptos and have been investing in many emerging projects..cheer
