G20 Finance Chiefs Say Digital Assets Can Support Growth, Back Clear Pathways for Innovation

Finance ministers and central bank governors from the Group of 20 formally recognized the potential for digital assets to support economic growth and agreed to create clear pathways for responsible innovation.

A G20 chair's statement released on Sept. 1 by U.S. Treasury Secretary Scott Bessent included language on digital assets. Finance ministers and central bank governors said they shared the view that digital assets have the potential to support economic growth.

The statement also said the group would work together to build "clear pathways" for responsible innovation in the digital-asset sector. The goal is to use digital assets as a tool for innovation in the economy and financial system while refining the related institutional and regulatory framework.

The group also stressed the need to improve cross-border payment systems. The G20 said it would pursue longer operating hours for systems used by banks and central banks to process large-value or urgent payments.

The statement also called for broader use of ISO 20022, the international financial messaging standard used for information exchange among financial institutions, and for steps to facilitate cross-border transfers of financial-services data. The measures are aimed at improving the efficiency of cross-border payments.

Discussions on global stablecoins are also set to continue. The G20 said it is awaiting the Financial Stability Board's analysis of the cross-border effects of global stablecoins.

The statement showed that the G20 recognizes the growth potential of digital assets while also stressing the need to update rules in areas tied to the global financial system, including cross-border payments and stablecoins.