It appears that the upcoming G20 summit, in April of 2018, may see the Group of 20 discussing regulations for Bitcoin, the world’s largest cryptocurrency, currently worth more than major companies, with a market cap of over $320 billion.
The proposal comes from France, with the French Finance Minister, Bruno Le Maire, announcing his decision yesterday:
“I am going to propose to the next G20 president, Argentina, that at the G20 summit in April we have a discussion all together on the question of bitcoin.”
Minister Bruno Le Maire went on to cite the speculative nature of Bitcoin and the inherent risks as the reasons behind his recommendation. He hopes that discussing the matter at the G20 summit will lead to a collective effort by the member countries to frame regulations for digital currencies:
“There is evidently a risk of speculation. We need to consider and examine this and see how (...) with all the other G20 members we can regulate bitcoin.”
While Bitcoin is not new, this year saw it finally break into mainstream media, and its massive price surge, from $1,000 to $20,000 has had everyone talking. However, as is the case with the crypto market, prices are hardly ever stable, and one can see multiple $1,000 swings in a day.
Given its volatility, and how its price is largely based on speculations, governments and financial institutions around the world have begun to take note and warn the public about the very real risks of losing their investments.
Additionally, the ‘for criminals’ narrative has also been a major campaign-point for governments and regulatory bodies, which focus on the largely anonymous nature of digital currency transactions as the facilitators of money laundering and various illegal activities.
Various countries around the world have started cracking down on crypto in different ways, but a comprehensive discussion on regulations by the Group of 20 may end up setting a precedent for the rest of the world to follow.