Cryptocurrencies and the G20 Summit – Will Market Values be Affected?

G20 Summit

Will the G20 Summit give support to cryptocurrencies?

Bans, criticism, and regulatory interference have intensified the debate over the fundamentals of cryptocurrencies. The prices of digital currencies have been sliding steadily over the last two weeks on crypto exchanges; BTC price has hit $7,000 on Sunday before paring some losses later in the day and extending the uptrend on Monday.

Global leaders had publicized strong concerns on cryptocurrencies during the world economic forum and asked regulators to play their part in streamlining the unregulated digital currencies according to the comprehensive trading policies.  

Traders are now closely watching global leaders approach on cryptocurrencies during the G20 summit that will take place in Buenos Aires on Monday and Tuesday.

Besides from the leader’s attitude, traders are also giving significant importance to ‘the G20 Financial Stability Board’ meeting that will discuss pros and cons of cryptocurrencies along with the role of regulators in eliminating data gaps.

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Fundamental Support from G20 Summit is Unlikely

The Bank of England Governor Mark Carney, who had loudly criticized cryptocurrencies and called crypto traders fools, will chair of the Financial Stability Board.

Mr. Carney has previously said: “The prices of many cryptocurrencies have exhibited the classic hallmarks of bubbles including new paradigm justifications, broadening retail enthusiasm and extrapolative price expectations reliant in part on finding the greater fool.”

However, in a letter to the members of the FSB board, the chairman hasn’t emphasized on the need for taking strict actions on cryptocurrencies.

G20 Summit

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Bitcoin price (BTC) recovered sharply after a friendly statement from FSB chairman while Ethereum (ETH), Ripple (XRP) and Bitcoin Cash (BCH) posted high double-digit gains in prices on Monday.

“The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time,” FSB Chair Mark Carney said in a letter to G20 central bankers and finance ministers who will meet in Buenos Aires on Monday and Tuesday.

Although the statement from Carney subsides the threat of an immediate crash in prices, the prices are unlikely to get the long-term fundamental support from FSB members considering their concerns over the illegal use of cryptocurrencies and its potential to serve as a medium of exchange.

Featured Image: Depositphotos/© denisismagilov

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