{"id":44874,"date":"2023-10-14T19:25:34","date_gmt":"2023-10-14T13:55:34","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=current-affairs&#038;p=44874"},"modified":"2023-11-08T12:58:21","modified_gmt":"2023-11-08T07:28:21","slug":"financial-stability-board","status":"publish","type":"current-affairs","link":"https:\/\/pwonlyias.com\/stage\/current-affairs\/financial-stability-board","title":{"rendered":"G20 Roadmap on Crypto Assets: Proposed By Financial Stability Board and IMF"},"content":{"rendered":"<h2><b><span style=\"font-size: 18pt;\">Context:<\/span> <\/b><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">Recently, the <\/span><b>Finance Ministers and Central Bank Governors (FMCBG)<\/b><span style=\"font-weight: 400;\"> from G20 nations adopted a roadmap for regulating crypto assets proposed by the <\/span><b>Financial Stability Board (FSB)<\/b><span style=\"font-weight: 400;\"> and the <\/span><b>International Monetary Fund (IMF)<\/b><span style=\"font-weight: 400;\"> at their meeting at <\/span><b>Marrakesh in Morocco.<\/b><b>\u00a0<\/b><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Roadmap for Crypto Regulation: Proposed by\u00a0 Financial Stability Board (FSB) and IMF<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This was the\u00a0 fourth and final\u00a0 G20\u00a0 <\/span><b>Finance Ministers and Central Bank Governors (FMCBG) <\/b><span style=\"font-weight: 400;\">meeting under the Indian presidency, with previous meetings held in <\/span><b>Washington, Bangalore, and Gandhinagar.<\/b><\/li>\n<li><span style=\"font-weight: 400;\">Ministers and Governors adopted the Roadmap proposed in the IMF-Financial Stability Board synthesis paper on Crypto assets.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The IMF and the FSB created this paper at the request of the Indian G20 Presidency to synthesise policy suggestions and criteria.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The paper offers a comprehensive set of policy and regulatory recommendations aimed at identifying and addressing the macroeconomic and financial stability risks associated with crypto assets.\u00a0<\/span><\/li>\n<\/ul>\n<table style=\"background-color: #b8a5d987;\">\n<tbody>\n<tr>\n<th style=\"border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle;\"><span style=\"color: #000000;\"><b>International Monetary Fund (IMF)<\/b><\/span><\/p>\n<ul>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">The IMF was conceived in<\/span><b> July 1944 at the United Nations Bretton Woods Conference.\u00a0<\/b><\/span><\/li>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><b>Functions: <\/b><span style=\"font-weight: 400;\">Providing<\/span><b> loans and concessional financial assistance<\/b><span style=\"font-weight: 400;\"> to member countries experiencing actual or potential balance-of-payments problems.<\/span><\/span><\/li>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><b>Headquarters: Washington D.C, USA.<\/b><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><b>Financial Stability Board (FSB)<\/b><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Financial Stability Board is an international body that monitors and makes recommendations about the global financial system.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Headquarters: Basel, Switzerland.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Its decisions are not legally binding on members.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">India is a Member of the Financial Stability Board<\/span><\/li>\n<\/ul>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table style=\"width: 100.236%; background-color: #b8a5d987;\">\n<tbody>\n<tr>\n<th style=\"width: 100%; border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle;\"><span style=\"color: #000000;\"><b>What is crypto currency and how does it work?<\/b><\/span><\/p>\n<ul>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><b>Cryptocurrency <\/b><span style=\"font-weight: 400;\">is a <\/span><b>digital form of currency <\/b><span style=\"font-weight: 400;\">secured by<\/span><b> Blockchain Technology.\u00a0<\/b><\/span><\/li>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">It operates in a <\/span><b>decentralized manner, free from government or institutional control.\u00a0<\/b><\/span><\/li>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">Notable <\/span><b>examples include Bitcoin, Ethereum, and Litecoin.<\/b><\/span><\/li>\n<\/ul>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<p><b>G20 Roadmap on Crypto Assets: <\/b><span style=\"font-weight: 400;\">It is an action-oriented roadmap that will help coordinate global policy as well as develop mitigating strategies and regulations on such assets.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Balanced Approach to Bans: <\/b><span style=\"font-weight: 400;\">The IMF and <\/span><span style=\"font-weight: 400;\">Financial Stability Board <\/span><span style=\"font-weight: 400;\">paper advocates for<\/span><b> comprehensive oversight of crypto instead of a blanket ban.<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">It also focuses on the implications for <\/span><b>Emerging Markets and Developing Economies (EMDEs),<\/b><span style=\"font-weight: 400;\"> which are anticipated to bear the brunt of the crypto market&#8217;s volatility.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Safeguarding Monetary Sovereignty and Stability:<\/b><span style=\"font-weight: 400;\"> Paper highlights the importance of preserving monetary sovereignty and stability when dealing with Virtual Digital Asset (VDA).<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">This involves not granting official currency or legal tender status to VDAs, which helps protect traditional monetary systems and national currency stability.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Clear Tax Treatment:<\/b><span style=\"font-weight: 400;\"> Unambiguous tax treatment is essential for VDAs. Clear and consistent tax policies prevent evasion and ensure that VDAs contribute fairly to national revenues.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Monitoring the Impact on the International Monetary System (IMS):<\/b><span style=\"font-weight: 400;\"> Given the global reach of VDAs, their impact on international financial stability must be monitored closely to safeguard the integrity of the IMS.<\/span><\/li>\n<\/ul>\n<p><b><i>News Source: <\/i><\/b><a href=\"https:\/\/indianexpress.com\/article\/business\/economy\/g20-ministerial-swift-implementation-roadmap-crypto-assets-8980974\/\" target=\"_blank\" rel=\"nofollow noopener\"><b><i>The Indian Express<\/i><\/b><\/a><\/p>\n<table style=\"background-color: rgba(184, 165, 217, 0.53); width: 99.9444%;\">\n<tbody>\n<tr>\n<th style=\"width: 100%; border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle;\"><span style=\"color: #000000;\"><b>Attempt the Prelims Question<\/b><\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">The terms &#8216;WannaCry, Petya and EternalBlue&#8217; sometimes mentioned in the news recently are related to; (2018)<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">(a) Exoplanets<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">(b) Cryptocurrency<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">(c) Cyber attacks<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">(d) Mini satellites<\/span><\/p>\n<p><span style=\"color: #000000;\"><b>Ans: (b)\u00a0<\/b><\/span><\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Context: Recently, the Finance Ministers and Central Bank Governors (FMCBG) from G20 nations adopted a roadmap for regulating crypto assets proposed by the Financial Stability Board (FSB) and the International Monetary Fund (IMF) at their meeting at Marrakesh in Morocco. <\/p>\n","protected":false},"author":11,"featured_media":0,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"tags":[],"paper-wise":[2089],"subject":[2100],"acf":[],"_links":{"self":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/44874"}],"collection":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs"}],"about":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/types\/current-affairs"}],"author":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/comments?post=44874"}],"version-history":[{"count":7,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/44874\/revisions"}],"predecessor-version":[{"id":50523,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/44874\/revisions\/50523"}],"wp:attachment":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media?parent=44874"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/tags?post=44874"},{"taxonomy":"paper-wise","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/paper-wise?post=44874"},{"taxonomy":"subject","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/subject?post=44874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}