A virtual sigh of relief resonated amongst investors worldwide following the G20 announcement through the Financial Stability Board (FSB) that, for now, there wouldn’t be any clampdown in regulation on cryptocurrencies and or tokens. The announcement led to an upwards surge in Bitcoin and other altcoins with many of the market cap leaders making double digit gains.
Much of the fear, uncertainty, and doubt surrounding the use of tokens and digital currencies has been its potential to upset major economies due to its volatile nature. In early February of this year, French and German finance officials sent a joint letter of concern.
“We believe there may be new opportunities arising from the tokens and the technologies behind them,” wrote French Finance Minister Bruno Le Maire, his German counterpart Peter Altmaier, French central bank governor Francois Villeroy de Galhau and his German colleague Jens Weidmann.
“However, tokens could pose substantial risks for investors and can be vulnerable to financial crime without appropriate measures. In the longer run, potential risks in the field of financial stability may emerge as well,” they added.
FSB chair Mark Carney reported that the cryptocurrency market makes just 1% of the global GDP at its peak and does not, in his opinion, pose any risks to the global market.
The G20 (aka Group of Twenty) was founded in 1999 and is an international body of finance ministers/bank governors from the nations of Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, the Republic of Korea, the Russian Federation, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States, and the European Union. The nation of Spain is not an offical member but is recognized as a permanent guest member. The goal of the G20 is to discuss policies that help promote and maintain healthy economic systems worldwide.