Indian Finance Minister Nirmala Sitharaman has dismissed cryptocurrencies as currencies and instead advocated for G20 regulation.
In a recent statement, Sitharaman highlighted the speculative nature of cryptocurrency assets, emphasizing that they are primarily used for trading and revenue-generating activities rather than functioning as traditional currencies.
G20 calls for regulation amid cryptocurrency concerns
Sitharaman called on the G20 to establish a unified regulatory framework for cryptocurrencies to address their global impact, including the potential risks of cross-border payments and illicit activities.
Participating in G20 discussions, Sitharaman highlights the need for international cooperation to put in place effective regulations to manage risks associated with digital assets.
RBI’s cautious approach to cryptocurrencies
While India is embracing blockchain technology, the Reserve Bank of India (RBI) We remain wary of cryptocurrencies due to their volatility and speculative nature.
Cryptocurrencies lack legal tender status in India, as highlighted in the recent Regulations on Cryptocurrencies and Official Digital Currency Bill, and there are no specific regulations regulating them. Governor Shaktikanta Das expressed concern about the lack of fundamental value in cryptocurrencies, stressing the importance of maintaining financial stability amid the growing global popularity of cryptocurrencies.
Through a prudent strategy, the RBI aims to protect India’s financial sovereignty and mitigate potential disruptions to the banking system arising from unregulated cryptocurrency activities.
Also Read: Impact of India Budget 2024 on Cryptocurrency and Startup Landscape
Key points:
- Indian Finance Minister Nirmala Sitharaman has called on the G20 to draft a regulatory framework, arguing that cryptocurrencies do not qualify as currencies.
- The Reserve Bank of India (RBI) maintains a cautious approach towards cryptocurrencies, emphasizing the importance of regulatory caution to maintain financial stability and mitigate risks.