By Ussal Sahbaz in Renita D’Souza, et al., Eds, G20 in 2023: Priorities for India’s Presidency (New Delhi: ORF and Global Policy Journal, 2022), pp. 78-84.

Under the Indonesian presidency in 2022, crypto assets have made a comeback to the G20 agenda, this time with a focus on general regulations. This is partly due to a hike in crypto-asset prices in 2021 and then their collapse in early 2022. At its peak, the global total value of crypto assets reached US$3 trillion, with widespread adoption worldwide.

They regard this as a type of capital outflow that may ultimately limit the macroeconomic policymaking power. In 2023, for the first time in the grouping’s history, the G20 Troika (consisting of the past, current, and incoming presidencies) will include three emerging economies— Indonesia, India, and Brazil. Given their concerns, the G20 is likely to place the regulation of crypto assets as a priority within the International Finance Working Group. Crypto assets are also relevant for some existing G20 priorities under the finance track, including financial inclusion and the facilitation of cross-border payments.