The Union Finance Minister, Nirmala Sitharaman, said on Monday that the biggest risk of cryptocurrencies worldwide is that they can be used for money laundering and financing terrorism.
As she explains, regulation must be technologically adept, as she explains, “Regulation using technology will have to be so adept that it has to be not behind the curve, but be sure that it is on the top of it.”
Cryptocurrency regulation, according to the minister, can only be achieved with the help of a broad coalition of countries worldwide.
Cryptocurrency in India
According to the Indian government, cryptocurrencies will not be introduced in the country. India’s central bank, the Reserve Bank of India, has also expressed “serious concerns” about private cryptocurrencies, warning that they could lead to financial unrest.
PM Narendra Modi asked countries for help in 2021 to make sure that digital currencies like Bitcoin did not “end up in the wrong hands.”
IMF praised India
IMF Managing Director Kristalina Georgieva also met with Indian Finance Minister Sushma Sitharaman and raised concerns about the impact of rising oil prices on global economic growth.
According to PTI, Georgieva also praised India’s well-targeted policy mix that allowed the country to remain resilient within a limited fiscal space.
She was grateful for India’s assistance to Sri Lanka, which is going through its worst currency crisis since gaining independence in 1948. She said that the International Monetary Fund will also continue to aid the island nation.
As part of the Spring Meetings, Sitharaman met with Sri Lanka’s outgoing Finance Minister Ali Sabry and discussed ways to mitigate the island nation’s challenges, PTI reported.