The paper examines the key risks to macroeconomic stability, financial stability, and other areas (such as legal, financial integrity and market integrity related risks), posed by cryptoasset activities.

It then presents policy responses to these risks in the areas of:

• macro-financial policies;
• financial stability regulation; and
• other policies and regulation.

The paper concludes with an implementation roadmap. The roadmap includes planned and ongoing work related to the implementation of cryptoasset policy frameworks, which taken together seek to: build institutional capacity beyond G20 jurisdictions; enhance global coordination, cooperation, and information sharing; and address data gaps necessary to understand the rapidly changing cryptoasset ecosystem.

The paper does not establish new policies, recommendations or expectations for relevant member authorities.

The report suggests the regulatory framework should "cover all critical activities and entities, including activities related to the storage, transfer, exchange, and custody of reserves."

Entities that carry out multiple functions "should be subject to additional prudential requirements" and stablecoin issuers "should be subject to strict prudential requirements."

According to the report, "strong international cooperation, supported by robust, comprehensible, globally consistent crypto regulation, is essential to provide guidance, ensure consistent implementation, and contain spillover risks." 

Sub-Saharan Africa is witnessing a rapid development of digital currencies, such as the launch of the eNaira in Nigeria in 2021. Policymakers are weighing the benefits and risks of using these products to deliver financial services to their citizens. This note discusses three instruments – mobile money, central bank digital currencies, and cryptocurrency – which can be used to settle transactions and transfer funds.