**News Flash: G20 Focuses on Digital Currency and Tokenization**

As the G20 Finance Ministers and Central Bank Governors gear up for their meeting on October 23-24, the Bank for International Settlements (BIS) and the Financial Stability Board (FSB) have released key papers on tokenization. Brazil, holding the G20 presidency for 2024, is pushing for discussions on digital currency, following India's lead from last year.

**Key Points:**

- Both BIS and FSB highlight that tokenization is still rare and not fully understood.

- Tokenization carries risks similar to traditional finance, such as liquidity and operational fragilities.

- Despite its small scale, tokenization doesn't currently pose major financial stability risks.

- The BIS and FSB recommend increased monitoring and regulation by central banks.

India has backed the FSB's call for a global regulatory framework for crypto, emphasizing the need for international cooperation. The BIS continues to explore tokenization projects with central banks worldwide.