May 23, 2024
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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.

“The G20 of which the India is currently holding the Presidency, it was India’s proposal and it has been taken on board, I’m glad that the G20 has kept it in its agenda for this year, the IMF has given a paper on crypto currency and the way it can affect the macroeconomic stability. The Financial Stability Board (FSB), which was set up by G20, has agreed to give a report that will also focus on financial stability,” Ms Sitharaman said.”Their (FSB) report and IMF’s report are going to be discussed in July when Finance Ministers and Central Bank Governors will meet under the G20, and post that in September there will be a summit of Prime Ministers and Presidents of G20 nations that will be held in India,” she said.

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.

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