Risks and costs of global financial infrastructure increasing; decentralized finance must be developed - Russian finance minister
MOSCOW. Feb 28 (Interfax) - The costs of using global financial infrastructure and the associated risks are increasing, and it is necessary to develop decentralized finance, Russian Finance Minister Anton Siluanov said at a meeting of finance ministers and central bank governors from the G20 countries in Cape Town.
The key points of Siluanov's speech were published by the Finance Ministry's press service.
The global economy is currently shifting its focus towards protecting national interests, and this is a new format of operating that also presents new opportunities, Siluanov said.
"Artificial intelligence will be a key source of growth in the near future, and the development of decentralized finance will significantly reduce costs for the global economy and drive growth. Global security will benefit from the development of alternative solutions in international finance. The role of the G20 should be decisive in developing new sources of growth, mitigating risks and creating new opportunities," he said.
Financial infrastructure should be equally accessible to all, but its usage costs are rising along with the risks, he said.
"It is in our shared interest to ensure that the financial system operates smoothly and with lower costs. The benefits of financial infrastructure must be distributed fairly," he said.
New ways to finance infrastructure projects should be found, he said. "These could include platform-based solutions and innovative instruments such as digital financial assets, which could be issued by multilateral development banks. The accessibility and simplicity of regulation make the issuance of digital financial assets a source for rapidly raising capital. We propose that the Group of 20 consider coordinating the use of new technologies in financing infrastructure projects," he said.
The next meeting of G20 finance ministers will take place in April this year on the sidelines of the spring session of the IMF's and the World Bank's governing bodies.
