‘India’s Inputs Will Be Influential In Shaping Worldwide Crypto Policy’: Nirmala Sitharaman – News18

During the third meeting of the G20 Finance Ministers and Central Bank Governors (FMCBGs), Union Finance Minister Nirmala Sitharaman said that discussions on cryptocurrencies took place, and India’s inputs will be influential in shaping a comprehensive worldwide policy for these modern assets. She made these remarks at a media address in Gujarat after the conclusion of the 3rd meeting of G20 FMCBGs under India’s presidency of the forum.

The members of the G20 welcomed the Financial Stability Board’s high-level recommendation regarding crypto asset activities. They also discussed the presidency note prepared by India, recognising its significance in prioritising essential areas of work for the development of a comprehensive and coordinated global policy and regulatory framework.

India’s efforts in addressing this issue were appreciated by several members. As the preparation of the IMF-FSB Synthesis paper is in progress, India has submitted a Presidency Note to the G20 members, providing crucial inputs for a roadmap on crypto assets, as stated in an official release.

The Synthesis paper’s roadmap aims to establish a coordinated and comprehensive policy and regulatory framework that considers the various risks associated with crypto assets, as mentioned in the official release. The Finance Minister expressed the need for a global understanding and regulation of crypto assets, considering their implications on emerging markets and developing economies. She added that even small countries are affected by unregulated crypto assets.

When asked about the regulation of cryptocurrencies under the Financial Stability Board (FSB) regulations, the Finance Minister mentioned that a synthesis report, jointly prepared by the International Monetary Fund (IMF) and FSB, is expected to be released. Following its publication, discussions will be held on the inputs provided in the President’s note. However, she stated that it is difficult to speculate on the outcome at this stage and that we need to wait until the next summit. The Governor of the Reserve Bank of India (RBI), Shaktikanta Das, who was present at the press conference, mentioned that enthusiasm for cryptocurrencies is diminishing in many countries.

According to Finance Minister Sitharaman, all the G20 members expressed their appreciation for India’s initiatives in developing and utilising digital public infrastructure (DPI). She highlighted that the Indian presidency successfully introduced the DPI agenda to the G20 discussions. The transformative impact of DPI in promoting financial inclusion and productivity gains was acknowledged by the members. The Finance Ministers and Governors commended India’s pioneering efforts in utilising DPIs to expedite financial inclusion, particularly in reaching the most remote areas.