The G20 Leaders Summit 2018 in Buenos Aires ended on Saturday, December 1st. The members of the summit represent 85% of the global economic output, 66% of the world’s population and 75% of international trade.
Regulatory uncertainty is a constant driver of market instability. Events like G20 are a great opportunity for governments to develop a more sophisticated opinion on new technology. The rapid growth of the blockchain and crypto inevitably attracted the government’s attention to the topic. How the regulators react can have a noticeable impact on the industry.
G20 Leaders’ declaration sees cryptocurrency as an important part of an “open and resilient financial system” and that is “crucial to support sustainable growth”. The G20 also noted the importance of introducing AML measures per Financial Action Task Force (FATF) standards.
The participants of the summit expressed their positive attitude towards non-bank financial institutions, saying “we look forward to continued progress on achieving resilient non-bank financial intermediation. We will step up efforts to ensure that the potential benefits of technology in the financial sector can be realized while risks are mitigated.”
A few days after the G20 Summit, in Belgium, the southern European states – France, Italy, Spain, Malta, Cyprus, Portugal and Spain – signed a joint declaration to promote the adoption of blockchain in the region in order to “transform” their economies.
The potential influence of blockchain technology on society and the global economy are highly significant. With an ever-growing list of real-world uses, blockchain technology promises to have a massive impact on many industries.
Ultimately, these 7 European governments want to find ways that blockchain can be used for mobility, shipping, company registry, healthcare, education, transport, and more to transform the local economy. Using blockchain for government services could greatly change the way it functions. Ultimately, the result is “accountability and privacy for the end users.”
The declaration states that blockchain adoption “can result not only in the enhancement of e-government services but also increased transparency and reduced administrative burdens, better customs collection and better access to public information.”
Regulators are playing an important role in the development of the industry, regulation is necessary and is highly likely to bring transparency and stability for both investors and businesses. But even though the industry is still lacking much-needed regulation, we are already on our way to build a sustainable regulatory framework.