Finance Minister Nirmala Sitharaman has said that India’s position on crypto assets has been recognised by G20 members.

It is hoped that discussions on international architecture to deal with crypto assets will be completed by September, when India is to preside over the G20 summit.

Meanwhile, RBI Governor Shaktikanta Das has said some members of the G20 called for considering a complete ban on crypto.

“There is almost a clear understanding that anything outside the Central bank is not a currency. And this is a position that India has been taking for a very long time and we are glad that such a position is now getting acknowledgement from so many different members,” Finance Minister Nirmala Sitharaman said here on Saturday in a press conference at the end of First G20 Finance Minister and Central Bank Governors (FMCBG) meeting.

High-level recommendations

A schedule has been drawn to conclude the discussion. International Monetary Fund has already come out with a discussion paper. Going forward, side events are proposed on crypto assets at the IMF-World Bank Spring Meetings in April in Washington.

Financial Stability Board (FSB) will finalise its high-level recommendations on the regulation, supervision and oversight of global stablecoins, crypto-asset markets and activities by July this year and that will be discussed during the next FMCBG meeting in Gandhi Nagar.

BIS (Bank for International Settlement) will submit a report on analytical and conceptual issues and possible risk mitigation strategies related to crypto assets. Finally, IMF and the FSB will jointly submit a synthesis paper integrating the macroeconomic and regulatory perspectives of crypto assets in September 2023.

‘Multiple options under consideration’

Sitharaman also highlighted views expressed by various delegates during the G20 meeting. Canadian Central bank governor cautioned that crypto assets should not be given a regulator seal of approval without a well-thought-out approach to regulation. World Bank stated that the views of all developing countries should also be included in all policy frameworks.

Taking it forward, RBI Governor Shaktikanta Das said that multiple options are under consideration. But it’s too early to speak on what will be the eventual architecture, he said.

But yes, “there were views that it should be regulated with a view to control and check its proliferation, to control its risks. There were opinions expressed saying that the option of a ban or prohibition should also be considered. But this a work in progress,” the Governor added.

Further, he reminded every country is sovereign. “The countries will take their decisions. But once something is agreed in the G20, naturally it would be expected that countries would, by and large, follow whatever is the agreed position,” Das said.

He also highlighted that there is now wide recognition and acceptance of the fact that cryptocurrencies, or crypto assets, or crypto products, or by whatever name one calls it, “they involve several major risks to financial stability, to monetary systems, to cyber security issues, and to overall financial stability and they need to be looked at”.