The G20 countries, under India’s presidency, are actively discussing the creation of a global framework for regulating cryptocurrencies. Indian Finance Minister Nirmala Sitharaman confirmed the ongoing discussions during the Global Fintech Fest on September 5, emphasizing the need for a unified approach to this emerging asset class.
India’s role in shaping global crypto policy
India has been at the forefront of cryptocurrency discussions on the global stage. Sitharaman revealed that India’s presidency has initiated key discussions related to the regulation of crypto assets. These talks have been enriched by content-rich papers from global organizations such as the International Monetary Fund (IMF), the Financial Stability Board (FSB), and the Organisation for Economic Co-operation and Development (OECD).
Prime Minister Narendra Modi has also been vocal about the need for a global framework for cryptocurrencies. Last month, he stressed that emerging technologies like cryptocurrencies should be accompanied by regulations and a framework adhered to globally. India has even put forward proposals for a roadmap to introduce a global regulatory framework for crypto assets, seeking a common approach for all countries.
The dual nature of cryptocurrency: A threat and an opportunity
During the summit, Sitharaman described cryptocurrency as both “a threat as well as an opportunity,” highlighting the complex nature of the asset class. She emphasized the need for global cooperation to build a responsible financial ecosystem that can effectively regulate cryptocurrencies worldwide. “Global cooperation is absolutely critical,” she added.
Since taking over the G20 presidency in the last quarter of 2022, India has consistently highlighted the need for global collaboration in financial security and stability. The country is also showing a rising interest in blockchain technology, as evidenced by the National Payments Corporation of India’s recent job posting for a head of blockchain.
