“Given the need to reduce potential sources of risk to financial stability, at their Kananaskis Summit G7 leaders should agree on principles underpinning the smooth regulation and supervision of digital financial intermediaries and trades”
banking system, as consumers will prefer a deposit at the central bank rather than a private bank. Although the technology cannot be limited, a lack of coordination in managing these risks can affect financial stability at the global level. Given the need to reduce potential sources of risk to financial stability, at their Kananaskis Summit G7 leaders should agree on principles underpinning the smooth regulation and supervision of digital financial intermediaries and trades. The Financial Stability Board set the Global Regulatory Framework for Crypto-Asset Activities based
on the principle of ‘same activity, same risk, same regulation’. This framework provides a strong basis for ensuring that crypto-asset activities are subject to consistent and comprehensive regulation, commensurate with the risks they pose, while supporting responsible innovations potentially brought by technological change. Following the positive growth rates of digital markets and the preventive and constructive approach taken over the last 10 years, a market-based approach, as opposed to a strict regulatory one, is more likely to prevail among G7 members.
MONTHLY GLOBAL ECONOMIC POLICY UNCERTAINTY INDEX, 2024
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// CHIARA OLDANI Chiara Oldani is a professor of monetary economics at the University of Viterbo ‘La Tuscia’ and the director of the Rome office of the G7 and G20 Research Groups. Her research focuses on financial innovation and stability. X-TWITTER @ChiaraOldani
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Source: Economic Policy Uncertainty https://www.policyuncertainty.com
43 globalgovernanceproject.org
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