The distribution of resources and population is not symmetric in the world, providing huge advantages to just a few countries.
Crypto fanatics are always looking for positive news about crypto regulation.
As of now, crypto is legal in only a handful of countries of which the most prominent is El Salvador. The South American nation has adopted Bitcoin as legal tender.
But, it should be asked, will adoption by small countries or tax havens make crypto mainstream?
Unfortunately, the answer is a no.
These countries work as the laboratory for crypto innovation, but the mainstream adoption will come from big economies.
This makes the case for G20 countries.
G20 or Group of Twenty is an intergovernmental forum comprising 19 countries, the European Union.
It comprises of Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States, and the European Union. Spain is also invited as a permanent guest.
These countries make up 80 percent of world GDP, 75 percent of international trade and 60 percent of the world population.
It began in 1999 as a meeting for the Finance Ministers and Central Bank Governors. Today it also involves the Head of State and Government in a yearly summit.
In addition to that, the Sherpa meetings (in charge of carrying out negotiations and building consensus among Leaders), working groups, and special events are also organized throughout the year. Their decisions impact almost the whole world.
The member countries wield enormous powers even in other multilateral organizations.
Their influence is shown below.
GDP of G20 Members
The GDP (Nominal) of the World was $84 trillion in 2020, according to World Bank.
The GDP of G20 countries was.
|Countries||GDP (Nominal) in $|
Excluding EU the total is around $67 trillion.
Population of G20 Members
G20 members account for more than 60% of the global population.
|Countries||Population in crores|
Excluding EU, the total population is 465.4 crores
G20 Members at World Bank
In the World Bank, the top 10 countries who also happen to be G20 members hold, 51% of the voting power.
|Country||Voting Power in % (World Bank)|
G20 Members at IMF
IMF Quota provides the voting power. It is calculated on the basis of the contribution of a country to the IMF.
Here too, the countries with the highest voting power are members of the G20.
|Country||No. of Votes in % (IMF)|
Just 10 members control the majority of IMF
All the statistics show their regional and global dominance.
These countries are important not just because of the population and size of the economies of these countries but also their regional dominance.
There are other countries too which have bigger population or economy. However, military and geopolitical regional dominance also make these countries important players in the global governance arena.
If just these countries, excluding the EU and China, legalize crypto, around half of the global population will get access to crypto. The G20 countries have the most number of Fortune 500 companies, billionaires, and unicorn startups.
So, the biggest crypto businesses will be created in these countries.
Thus, it is paramount to focus on the regulatory steps taken by these countries.
In the next few days, we will be focusing on the individual stances of each G20 country.
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