Cryptocurrency and Financial Inclusion Could Define Legacy in G20

A senior official has revealed that India’s G20 presidency could leave a significant legacy, focusing on a common cryptocurrency framework and a financial inclusion action plan leading up to 2026. However, there are ongoing disagreements among delegations, particularly regarding the language surrounding war and issues related to food and energy insecurities.

As the chair of the G20 finance track, India has set out an ambitious agenda with 27 deliverables. So far, 10 of these have received endorsement, while the remaining 17 have garnered welcome from G20 delegations. Progress has been positive on most deliverables, except for reaching a consensus on the language pertaining to war and food insecurity, primarily due to Russia’s stance.

One of India’s key objectives within the finance track is to bolster the lending capabilities of multilateral development banks, support the development of sustainable cities, and establish an action plan for providing technical assistance on sustainable finance and debt resolution for distressed nations.

Regarding cryptocurrencies, the G20 finance track has established a roadmap and foundational elements for a common framework. This framework will be presented at the upcoming leaders’ summit commencing on September 9. The next step involves implementing the framework created in collaboration with the International Monetary Fund (IMF), the Financial Stability Board (FSB), and the Bureau of Indian Standards. A joint synthesis paper on cryptocurrencies by the IMF-FSB has been circulated among delegations, accompanied by a presidential guidance note from India summarizing the IMF-FSB report.

India’s chairmanship has also introduced a Financial Inclusion Action Plan for 2024–2026, outlining policy recommendations for advancing digital public infrastructure and achieving greater productivity gains. This legacy in digital infrastructure and financial inclusion will be carried forward to the next presidency.

Climate finance and transition assessment have remained top priorities for India during its G20 leadership. Members of the G20 have collectively agreed on making the energy transition away from fossil fuels inclusive, rapid, cooperative, and customized. India has submitted a report on macroeconomic risks linked to climate change and the transition to sustainable practices.

Furthermore, India has proposed a framework for financing the cities of the future. Once approved by G20 leaders, this framework will serve as a model for select cities, implemented by multilateral banking institutions. India has developed a financial model/tool to assess and enhance the institutional capacity of urban financing, which will be customizable to specific urban needs.