FameEX Hot Topics | APEC Finance Ministers Discuss Cryptocurrency during San Francisco Meeting

U.S. Treasury Secretary Janet Yellen looked forward to engaging with finance ministers from leading crypto-innovative nations during the Asia-Pacific Economic Cooperation (APEC) summit, which commenced in San Francisco on November 11. While the anticipated meeting between U.S. President Joe Biden and Chinese President Xi Jinping on November 15 is expected to be the summit's highlight, the gathering of finance ministers holds its own significance within the broader focus on the regional economy.

During her address at the finance ministers' meeting on November 13, Yellen offered insights into the agenda. She emphasized that the discussions would prioritize "long-term oriented" areas with a strong emphasis on sustainability. Additionally, the agenda included dedicated sessions on supply-side economics and digital assets. Yellen explicitly mentioned topics such as unbacked crypto assets, stablecoins, and central bank digital currencies (CBDCs).

Yellen underscored the value of collaboration and dialogue with the private sector as a means to enhance policymakers' understanding of the tools required for the responsible development and utilization of digital assets. She expressed eagerness to hear the perspectives of finance ministers on the sustained roles of digital assets and blockchain technologies within their respective financial systems. Additionally, Yellen sought insights into how these authorities intend to approach the regulatory oversight of these evolving technologies.

In anticipation of the finance ministers' meeting, Yellen had previously held discussions with He Lifeng, a prominent Chinese economic official, on November 9 and 10. Despite China having effectively banned cryptocurrency trading since 2021, the nation has emerged as a global leader in the development of central bank digital currencies (CBDCs). The diverse range of perspectives that Yellen is likely to encounter during the November 13 meeting may contrast with the relatively cautious stance on cryptocurrencies held by the Biden administration. As Asia continues to spearhead advancements in blockchain development, including in areas such as the metaverse, cryptocurrency trading, and widespread adoption, discussions at the APEC summit are expected to shed light on these contrasting approaches and perspectives.

APEC comprises 21 Pacific-region "economies," spanning regions in Asia, North America, and South America. Its membership structure allows for the inclusion of economies like Hong Kong and Taiwan without generating diplomatic controversies. Notably, Ripple, a major sponsor at the diamond level, played a prominent role in the summit's proceedings.