NEW DELHI: During their two-day meeting, which ended on Thursday in Washington, G20 Finance Ministers and Central Bank Governors (FMCBG) acknowledged the urgency of addressing debt vulnerabilities, including strengthening multilateral coordination to address growing debt distress in low-income and vulnerable middle-income countries, as well as challenges to the global economy, including Ukraine. The participants came to the conclusion that international policy responses to crypto assets are necessary.

Nirmala Sitharaman, the minister of finance, who presided over the meeting on April 12 and 13, told the media that low- and middle-income nations need funds for developmental initiatives. "There are pockets of underdeveloped areas in middle-income countries, especially in the post-pandemic era, which desperately need funding for development," she said.

"We are turning to the World Bank for two key purposes: reducing extreme poverty and fostering prosperity after poverty alleviation. The third pillar will now need to include sustainability objectives, climate finance targets, and energy transition goals, said Sitharaman.

There has been a higher acceptance among G20 members of India's proposal to regulate crypto assets, according to the report. The G20 and its members concur that no one nation will be able to handle digital assets, the Finance Minister said.

To regulate crypto assets, there needs to be a unified worldwide understanding. The Financial Stability Board's (FSB) paper is currently being discussed, and the IMF paper will follow soon. She added that a synthesis document based on the work of the IMF and FSB would be prepared.

"There is a consciousness that cryptocurrency assets, particularly those not backed by any sovereign assets, can themselves cause macro-economic instability," Sitharaman said.

During the "Global Sovereign Debt Roundtable" where all stakeholders of the debt distress-related issues, private participants and affected countries were there, positive discussions were held on the debt restructuring issue, the Finance Minister said. She also said, "Discussion on climate finance is moving in a positive direction, not just the current flow but also the quantum required for meeting climate challenges. Private financing, transitional costs and technological need are also being looked into," she said, adding that G20 discussions also progressed under the Global Partnership for Financial Inclusion.

"Countries showed a strong interest in using Digital Public Infrastructure (DPI) to increase productivity and financial inclusion worldwide. Cross-border payment concerns are included while discussing crypto and DPI. She stated that the problem of cross-border payments "has the potential to be a very important instrument to have a good buy-in from all the G20 countries.

The FMCBG meeting on international taxes concentrated on the urgent need to mobilise worldwide efforts in order to achieve a fair, sustainable, and contemporary international tax system. Swift implementation of the multi-pillar international tax package has been called for by all members," Sitharaman remarked.

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