Indian Finance Minister Nirmala Sitharaman dismisses cryptocurrencies as currencies, advocating for G20 regulation instead.

In a recent statement, Sitharaman underscored the speculative nature of crypto assets, emphasizing their predominant use in trading and profit-making activities rather than functioning as traditional currencies.

G20 Regulation Urged Amidst Crypto Concerns

Sitharaman calls upon the G20 to establish a unified regulatory framework for cryptocurrencies to address global implications, including potential risks in cross-border payments and illicit activities.

Participating in G20 discussions, Sitharaman stresses the need for international collaboration to formulate effective regulations capable of managing the risks associated with digital assets.

RBI’s Cautionary Approach Towards Cryptocurrencies

While India embraces blockchain technology, the Reserve Bank of India (RBI) remains wary of cryptocurrencies due to their volatility and speculative nature.

Cryptocurrencies lack legal tender status in India, with no specific regulations governing them, as highlighted by the recent Cryptocurrency and Regulation of Official Digital Currency Bill. Governor Shaktikanta Das has voiced concerns about the lack of underlying value in cryptocurrencies, emphasizing the importance of maintaining financial stability amidst their rising global popularity.

Through a cautious strategy, the RBI aims to safeguard India’s financial sovereignty and mitigate potential disruptions to the banking system posed by unregulated cryptocurrency activities.

Also Read: Indian Budget 2024’s Impact on Crypto and Startup Landscapes

Key Pointers:

• Indian Finance Minister Nirmala Sitharaman asserts that cryptocurrencies do not qualify as currencies and urges the G20 to draft a regulatory framework.
• The Reserve Bank of India (RBI) maintains a cautious approach towards cryptocurrencies, emphasizing the importance of regulatory caution to uphold financial stability and mitigate risks.