G20 Summit: Delhi Declaration Advances Global Discussion On CBDCs
On the inaugural day of the G20 Summit held in New Delhi, Prime Minister Narendra Modi announced a significant development regarding the consensus reached on the New Delhi G20 Leaders' Summit Declaration. The areas addressed by the declaration was the discussion on Central Bank Digital Currency (CBDC).
The declaration welcomed discussions regarding the introduction and widespread adoption of Central Bank Digital Currencies (CBDCs). One notable aspect of this declaration was the warm reception accorded to the BIS Innovation Hub (BISIH) Report on Lessons Learned on CBDCs.
Furthermore, the declaration expressed eagerness for the forthcoming report from the International Monetary Fund (IMF) on the Potential Macro-Financial Implications of Widespread Adoption of CBDCs.
After launching the wholesale pilot of CBDC in November last year, Reserve Bank of India (RBI) Governor Shaktikanta Das recently announced that the central bank is gearing up to explore additional use cases within the wholesale pilot program. During his speech at the Global Fintech Fest 2023 this week, Das said, "We are currently in the process of considering additional use cases for the wholesale pilot of CBDCs."
Meanwhile, the Delhi declaration also looked at crypto-assets. The declaration made clear the commitment to closely monitor the risks associated with the fast-paced growth of the crypto-asset ecosystem. It endorsed the high-level recommendations put forth by the Financial Stability Board (FSB) pertaining to the regulation, supervision, and oversight of activities and markets related to crypto-assets, as well as global stablecoin arrangements. The declaration also urged the FSB and Standard-Setting Bodies (SSBs) to ensure the effective and timely implementation of these recommendations on a global scale.
