“Regulating Crypto Without Global Consensus Will Not Be Effective”
Union Finance Minister Nirmala Sitharaman
Bengaluru: Union Finance Minister Nirmala Sitharaman on Sunday noted that global consensus is needed for regulation of crypto, before India does anything about it.
Sitharaman said a global template may have to be created and everyone has to work together on it, otherwise regulating it will not be effective, PTI reported.
However, the Union minister said that does not mean controlling “distributed ledger technology”, which has its goodness and potential. “The G20 which India currently holds the presidency of, it was India’s proposal and it has been taken on board, I am happy that the G20 has kept it on its agenda for this year, the IMF has given a paper on crypto currency and the way it can affect macroeconomic stability The Financial Stability Board (FSB), which was established by the G20, has agreed to provide a report that will also focus on financial stability, Sitharaman said.
“Their (FSB) report and the IMF’s report are going to be discussed in July when finance ministers and central bank governors meet at the G20, laying out that in September there will be a summit of prime ministers and presidents of G20 nations that will be held in India,” she said.
Sitharaman was responding to a question on regulation of digital or cryptocurrency while interacting with ‘Thinkers Forum, Karnataka’ here.
The first G20 Finance Ministers and Central Bank Governors (FMCBG) meeting under the Indian G20 Presidency was held during 24-25 February in Bengaluru.
“The underlying principle is, because the digital currencies are completely digitized and technology-driven, the technology that is very distributed, and sometimes identity is very difficult to establish, but that has potential, will therefore only have to be traded on with all countries that come on board , Sitharaman said.
“No country individually, in a matter of technology-driven, a crypto-asset, can effectively control it, because the technology has no borders, it can only pass through. So the very nature of it being technology-driven requires all countries to be on board, otherwise it would not be effective, she said.
Furthermore, noting that the understanding in the G20, along with the OECD (Organization for Economic Co-operation and Development) and other organizations such as the IMF, the World Bank and so on, is that a global template may need to be created, the minister said. “all of us have to work together on it, otherwise regulation of crypto may not be effective.”
“But that doesn’t mean we control the technology of distributed ledger technology, it has its goodness, potential and its own strengths. We keep that in mind,” she added.
Sitharaman said inflation in India today is largely “imported” at the cost of India being watched by the global community for the way it steered its own course through the pandemic, the Russia-Ukraine war and its spin-offs. fuel and fertiliser.
“So you bring everything in, while your own cause of inflation may be the supply side – that inflation in India we are aware of and every government is fighting it. But today the pressure on inflation in India is largely due to the imported price increases ,” she said, adding that amid all this, Prime Minister Narendra Modi has ensured that people of India will not suffer.
(With inputs from PTI)
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Updated Date: 23 Apr 2023 14:47:52 IST
