Mom & Dad (The G20) want to…
You know those childhood vices - the ones your parents would agree to put a blanket ruling on?
It often differed from household to household.
For example: for you it might have been video games, for your best friend it may have been screen time in general.
(For us, it was anything with red food coloring in it).
In this here analogy, mom & dad are played by a selection of G20 treasury officials, and the vice to be regulated is crypto.
The Financial Stability Board, is a rag tag group of treasury officials and central bankers, from the G20 nations.
On Monday, they announced they're looking to propose strong worldwide regulations on cryptocurrency.
'Worldwide', suggesting there will be little room for 'geographic work arounds.'
(I.e. No going to your friends place to gorge yourself on cherry soda and Twizzlers. Their parents have been worded up).
...so how strict are the rules?
At this point, we don't really know.
One of the main focuses seems to be on creating Central Bank Digital Currencies (CBDCs), aka government issued stablecoins.
Their pros: they have little to no risk of having a Luna style collapse.
Their cons: they have the potential to be used as a tool for some pretty grim financial control over a country's population.
E.g. If you do something the government isn't exactly a fan of, they can 'switch-off' your coins, making them worthless.
Is this a little this a little tin-foil-hatty? Yes.
Is it a real potential function of CBDCs? Also yes.
(It'd make something like Canada's recent freeze on protestor's bank accounts a whole lot easier).
Yikes!
Here's the 'pie in the sky' hopeful outcome:
Many in the crypto space have been asking for clear regulatory guidelines to be set on blockchain technology, so they can build and scale businesses without landing in jail on a 'grey area technicality.'
If fair and balanced regulatory frameworks can be set by the G20 - one where users have the option of exchanging in CBDCs or rolling the dice on privately run stablecoins (like USDC) - this could be a net positive for the crypto space.
A lack of clear regulation is the main reason big institutional money is yet to hit the crypto space.
Clear regulations = a LOT more cash flowing into Web3 = rising crypto prices = an Instagram video of you gifting your mom a Lambo.
(Not financial advice...maybe just start with a Miata, and take it from there - you do you).