India, currently holding the G20 presidency, is at the forefront of discussions aimed at establishing a comprehensive global framework for regulating cryptocurrencies. Under the leadership of Prime Minister Narendra Modi, India has been urging G20 member countries, which also include the European Union, to join forces in formulating cryptocurrency regulations. This call stems from the recognition that cryptocurrencies, being a technology with a profound worldwide impact, require a globally harmonized regulatory framework.
During the recent Global Fintech Fest on September 5th, Finance Minister Nirmala Sitharaman affirmed the commitment of G20 members to work towards the creation of a global cryptocurrency framework. She emphasized the dual nature of cryptocurrencies, describing them as both a potential threat and a significant opportunity.
Sitharaman highlighted the critical need for international collaboration to construct a responsible financial ecosystem capable of effectively regulating cryptocurrencies across borders. In her words, “Global cooperation is absolutely critical,” highlighting the interconnected nature of financial technology in an increasingly interconnected world.
Since India assumed the G20 presidency in the fourth quarter of 2022, the country has consistently emphasized the importance of global collaboration in ensuring financial security and stability. The finance minister disclosed that G20 members are actively engaged in discussions regarding highly anticipated cryptocurrency regulations, involving in-depth examinations of research papers from institutions such as the International Monetary Fund (IMF), Financial Stability Board (FSB), and the Organisation for Economic Co-operation and Development (OECD).
Additionally, Sitharaman revealed that both the IMF and FSB have submitted synthesis papers addressing the cryptocurrency landscape, further underscoring the global commitment to addressing this issue.
Earlier, on July 17, 2023, the FSB released a report with recommendations for regulating crypto firms. This report follows a request from the G20 to provide guidelines for supervising companies involved in trading cryptocurrencies like Bitcoin. The FSB aimed to create global regulations that will require crypto firms to comply with rules, ultimately enhancing the safety and stability of the crypto industry.
As country’s growing interest in blockchain and cryptocurrencies is evident, as highlighted by recent developments such as the National Payments Corporation of India (NPCI) actively seeking to hire a head of blockchain.
This position seeks an experienced technologist with a minimum of six years of blockchain development and implementation experience. The primary role of this individual will be to identify opportunities for deploying blockchain-driven solutions, demonstrating India’s commitment to exploring the potential of blockchain technology.