Regulating crypto without global consensus will not be effective: Nirmala Sitharaman
BENGALURU: Emphasizing that global consensus is needed for regulation of cryptobefore India does anything about it, the Union Finance Minister Nirmala Sitharaman on Sunday said a global template may need to be created and everyone needs to work together on it, otherwise it won’t be effective to regulate it.
However, the 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 so.
“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, and post that in September there will be a summit of prime ministers and presidents of G20 nations held in India,” said she.
The minister was responding to a question on regulation of digital or cryptocurrency while interacting with the ‘Thinkers Forum, Karnataka’ here.
The first G20 finance ministers and central bank governors (FMCBG) meet below G20 Indian Presidency was held during February 24-25 in Bengaluru.
“The underlying principle is, because the digital currencies are fully digitized and technology-driven, the technology that is very distributed, and sometimes identity is very difficult to establish, but has potential, will therefore just 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 won’t 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 crypto regulation cannot 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 world 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 all governments are fighting it. But today the pressure on inflation in India is largely due to the imported increases in prices,” she said, adding that amid all this, Prime Minister Narendra Modi has ensured that people of India will not suffer.
However, the 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 so.
“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, and post that in September there will be a summit of prime ministers and presidents of G20 nations held in India,” said she.
The minister was responding to a question on regulation of digital or cryptocurrency while interacting with the ‘Thinkers Forum, Karnataka’ here.
The first G20 finance ministers and central bank governors (FMCBG) meet below G20 Indian Presidency was held during February 24-25 in Bengaluru.
“The underlying principle is, because the digital currencies are fully digitized and technology-driven, the technology that is very distributed, and sometimes identity is very difficult to establish, but has potential, will therefore just 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 won’t 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 crypto regulation cannot 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 world 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 all governments are fighting it. But today the pressure on inflation in India is largely due to the imported increases in prices,” she said, adding that amid all this, Prime Minister Narendra Modi has ensured that people of India will not suffer.
