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Productive G-20 discussions help boost Bitcoin value

Bitcoin was valued at almost US$20,000 per token in December 2017. (Source: The Merkle)
Bitcoin was valued at almost US$20,000 per token in December 2017. (Source: The Merkle)
Bitcoin has received a significant boost in market value that has been put down to “very productive” discussions about cryptocurrencies and regulation at a G-20 meeting. The leading cryptocurrency has seen its value battered recently due to a number of market-related events, including pressure from the US Securities and Exchange Commission for tighter regulation.

A G-20 forum has been taking place in Buenos Aires, Argentina involving finance ministers and central bank governors from 20 of the world’s leading economies (including the EU). Cryptocurrencies and Bitcoin have been topics of discussion at the G-20 meeting, and although many opinions appeared to revolve around concerns in regard to links with terrorism and money-laundering, there was one particularly bright moment for virtual currency (VC). The Financial Stability Board (FSB), which deals with matters pertaining to the global financial system, made this statement:

The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time. The market continues to evolve rapidly, however, and this initial assessment could change if crypto-assets were to become significantly more widely used or interconnected with the core of the regulated financial system.

It seems likely that if the G-20 ministers and bankers had come to the conclusion that an immediate regulatory response was required for all cryptocurrencies, including Bitcoin, then virtual currency values would have plummeted. However, the Governor of the Central Bank of Argentina, Federico Sturzenegger, stated that “the spirit of the discussion was very productive and I agree that everybody left very pleased.” Bitcoin enjoyed a spike in value as it went from a low of US$8370 to a high (and close) of US$8950 for the day.


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Daniel R Deakin, 2018-03-20 (Update: 2018-03-20)