The Finance Minister of India, Nirmala Sitharaman, expressed her concern during her official visit to the U.S. regarding the “so many collapses and shocks in cryptocurrencies.” She asserted that G20 countries need to develop a unified framework to deal with the issue.
India Seeks Common Approach to Crypto
Finance Minister Niramala Sitharaman is currently in the U.S. to attend the Spring Meetings of the World Bank Group and the International Monetary Fund (IMF). She is also representing India at the G20 Finance Ministers and Central Bank Governors meetings, which are taking place alongside the IMF-World Bank Spring Meetings.
During a roundtable discussion, Sitharaman addressed the importance of regulating crypto assets. She stressed that G20 nations need to develop a common framework to address the “many collapses and shocks in cryptocurrencies.” She stated:
Cryptocurrencies are a very important part of the conversation under India’s G20 presidency, given so many collapses and shocks in cryptocurrencies. We seek to develop a common framework for all countries to deal with this matter.
The Indian government recently informed its parliament that crypto assets are currently unregulated and require international collaboration to prevent regulatory arbitrage. The Reserve Bank of India (RBI), the country’s central bank, has consistently recommended that the government ban all cryptocurrencies, such as bitcoin and ether.
Shaktikanta Das, Governor of the RBI, noted that G20 finance chiefs are aware of the potential financial stability risks posed by digital assets. Nevertheless, the Indian government has suggested that regulating or banning crypto would require global collaboration. During the last meeting of G20 finance ministers and central bank governors, the government requested the IMF and the Financial Stability Board (FSB) to create a synthesis paper on crypto assets.
What do you think about the statements by Indian Finance Minister Nirmala Sitharaman? Let us know in the comments section below.
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