The G20 (Group of 20) has backed the development of responsible regulatory and supervisory frameworks for digital assets and other forms of financial innovation, as artificial intelligence (AI) and digital finance reshape the global financial system.
Finance ministers and central bank governors from the G20 met in Asheville, North Carolina, on 31 August and 1 September for their second Finance Ministers and Central Bank Governors meeting under the US presidency. Their discussions covered economic growth, financial innovation, digital assets, AI, cross-border payments and financial sector regulation.
The G20 said digital financial innovation could support broader economic growth but stressed that regulators must address risks to financial stability and confidence in monetary and payment systems.
“We recognise the transformative role that digital financial innovation, including digital assets, can play in supporting broad-based economic growth and the key role of the private sector in driving this innovation,” the G20 said in its chair’s statement.
The group committed to advancing regulatory frameworks that can accommodate digital financial innovation while maintaining financial stability. It said the frameworks should “establish clear pathways for sound digital financial and digital assets innovation” while taking into account cross-border opportunities and challenges.
The G20’s position comes as digital assets become increasingly integrated into the wider financial system, with regulators globally developing rules covering cryptocurrencies, stablecoins, tokenised assets and digital financial services.
The statement also highlighted the role of the Financial Stability Board (FSB) in examining the cross-border implications of global stablecoin arrangements.
The G20 said it was looking forward to the FSB’s forthcoming findings on reports covering global stablecoins, including their cross-border implications and issues around stablecoin data sources and availability.
For the digital asset industry, a focus on regulatory clarity could help establish more consistent rules across markets while addressing concerns about financial stability, payments, and illicit finance.
AI was another major theme in the G20’s economic and financial discussions, with members describing the technology as a potential driver of productivity and global growth. The group said investment in AI, computing and digital infrastructure could increase productivity and support wider adoption, while warning that governments and financial institutions must account for emerging risks.
“We recognise that artificial intelligence is a general-purpose technology with the potential to have profound effects on the global economy,” the statement said.
The G20 added that economies embracing the responsible development, adoption and diffusion of AI would likely help determine the pace of global growth in the coming years.
AI was also linked to cybersecurity and financial stability. The G20 said AI-enabled innovation could strengthen cyber resilience, while central banks would need to distinguish changes in productive capacity from shifts in demand as AI and other structural changes affect economies.
The FSB is also expected to finalise work on responsible AI adoption in the financial sector. The G20 said it looked forward to the FSB’s paper on “Sound Practices for Responsible Adoption of AI”.
The G20 said regulatory and supervisory frameworks must be modernised to support resilient and efficient financial systems. It backed the FSB’s work on regulatory modernisation and said it would continue addressing potential financial sector vulnerabilities. Members also discussed national regulatory proposals and the implementation of the final components of Basel III. The statement links regulatory modernisation with the need to support innovation without weakening safeguards.
The G20 said it was committed to frameworks that preserve financial stability while enabling the development of digital finance and digital assets.
Cross-border payments were another area where the group called for continued progress. It reaffirmed the G20 Roadmap for Enhancing Cross-border Payments and called on countries to expand large-value payment system operating hours, encourage adoption of the ISO 20022 data model and facilitate cross-border transmission of financial services-related data, subject to data security and domestic legal requirements.
The G20 also placed digital assets within its broader anti-money laundering and financial crime agenda. It reaffirmed support for the Financial Action Task Force (FATF) and regional bodies responsible for implementing FATF standards covering money laundering, terrorism financing and proliferation financing.
The group called on jurisdictions with significant virtual asset activity to prioritise the effective implementation of FATF standards for virtual assets.
It also pointed to the growing use of AI by fraudsters and the threat posed by scam compounds.
“We are encouraged by the FATF’s renewed focus on combatting illicit finance and money laundering originating from fraud, especially the evolving threat emanating from scam compounds and exploitation of AI by fraudsters,” the G20 said.
The group welcomed efforts to strengthen public-private partnerships and information sharing to detect and disrupt illicit finance more quickly.
For digital asset businesses, the G20’s approach points to a regulatory environment that combines support for innovation with tighter expectations for compliance, transparency, and risk management.
The G20 also stressed the role of private investment and private-sector innovation in driving economic growth. It said that durable growth depends on a business environment that offers policy clarity while encouraging innovation, investment, skills development, and public-private collaboration.
