Crypto Regulation Is One Of 8 Planned Priorities Under India’s G20 Presidency, Says Finance Minister
India’s Finance Minister Nirmala Sitharaman said she would like to show the country is “moving fast” with digital financial technology as it prepares to take over the G20 presidency.
Speaking at the Indian Council for Research on International Economic Relations on November 1, Sitharaman said people in India have embraced digital technology “like a fish to water”. The finance minister added that the regulation of crypto assets is likely to be one of India’s priorities in its leadership of the G20, but it needs support from other members.
According to Sitharaman, India needed to work with organizations such as the International Monetary Fund, the Financial Stability Board, and the Organization for Economic Co-operation and Development to ensure that crypto “can be regulated with all countries on board.” assume the presidency of the G20 following a transfer from Indonesia in December.
“No country can succeed in individually siloing and trying to regulate crypto assets,” Sitharaman said.
The finance minister said crypto regulation is in India’s national interest due to the potential for transactions to be used for “drug financing”, “terrorist financing” or “just the game of the system. She urged G20 members to coordinate their policies to see how best to manage crypto assets.
In July, Sitharaman called for global collaboration on cryptocurrencies while addressing potential risks to financial stability. The Reserve Bank of India, or RBI, banned banks from offering services to crypto businesses in 2018, a ban that the country’s Supreme Court overturned in 2020. Since then, the central bank has periodically issued digital asset warningsciting threats to the Indian economy.
However, RBI said on October 31 that it was continue to advance with the release of a central bank digital currency first announced in February. The digital rupee pilot program for the wholesale segment was launched on November 1, with a three-step graduated approach should deploy the CBDC “with little or no disruption” to the traditional financial system.