Regulating Crypto Without Global Consensus Will Not Be Effective: Finance Minister
The Finance Minister of India, Nirmala Sitharaman, emphasized the importance of achieving global consensus before regulating cryptocurrencies. She suggested that all stakeholders need to collaborate on creating a universal framework for regulating cryptocurrencies, otherwise, any regulation imposed would not be effective. She also clarified that her statement was not intended to imply control over the underlying technology of cryptocurrencies, known as distributed ledger technology, which has many benefits and potential uses.
During an interaction with ‘Thinkers Forum, Karnataka’ in Bengaluru, India’s Finance Minister, Nirmala Sitharaman, emphasized the need for global consensus before regulating cryptocurrencies. She highlighted that since digital currencies are technology-driven and distributed, it is difficult for any one country to regulate them effectively.
She suggested that a global template may need to be created with the collaboration of all stakeholders, including G20, OECD, IMF, World Bank, etc. However, she clarified that her statement does not imply control over distributed ledger technology, which has its own potential and strengths. Additionally, she noted that India’s inflation is largely influenced by the price of fuel and fertilizers, and that the country’s response to the pandemic and global crises has been observed by the international community.
“So you are bringing it all in, while your own cause for inflation may be supply side- that inflation in India we are aware of and every government fights it. But today the pressure on inflation in India are largely because of the imported hikes in prices,” she said, adding that amid all this Prime Minister Narendra Modi has ensured that people of India will not be put to suffering.