The International Monetary Fund (IMF) has reiterated its readiness to accompany India in the regulation of the cryptocurrency market. The Indian Minister of Finance, for her part, called this institution to coordinate the establishment of a regulatory framework at the global level.
IMF and India ready to work together to regulate cryptocurrencies
On September 07, in New Delhi, the Managing Director of the International Monetary Fund Kristalina Georgieva exchanged with Nirmala Sitharaman, Indian Minister of Economy and Finance, ahead of the Indian presidency of the G20.
They discussed several topics of economic interest. Cryptos were invited on the table. According to the country’s Ministry of Finance, Kristinalina Georgieva and her host reiterated the importance of regulating the cryptocurrency sector.
Furthermore, both personalities insisted that for more efficiency, the new crypto regulation should be coordinated on a global scale. For the Indian Minister of Economy and Finance, the International Monetary Fund is best placed to take the lead on such an initiative.
For her part, the Director of the International Monetary Fund welcomed the meeting. She reiterated the commitment of her institution to accompany India on several fronts of economic governance.
The exchanges between Kristalina Georgieva and Nirmala Sitharaman on crypto regulation echoed an opinion piece published earlier this month by two IMF executives. Indeed, Aditya Narain, deputy director of the International Monetary Fund’s Money and Capital Markets Department and his second in command, Marina Moretti denounced fragmented regulation.
The two experts then called for coordinated, consistent and comprehensive regulation on a global scale to ensure a level playing field across countries.
To regulate crypto or to ban it? That is the question for the Indian government…
The position of the Indian Ministry of Economy is clear. It prefers the establishment of a clear regulatory framework rather than a crackdown on the crypto sector. On the other hand, the wildest dream of the country’s central bank is the disappearance of cryptos on Indian territory. Indeed, the Reserve Bank of India has vigorously warned against the use of cryptocurrencies time and again.
In his latest warning last month, Reserve Bank of India (RBI) Governor Shaktikanta Das said that “cryptocurrencies are not based on anything and pose a huge risk to investors.”
Yet despite the Reserve Bank of India’s sting against cryptos and a 30% capital gains tax on investors, more Indians than ever are interested in crypto-currencies. As a survey by exchange Kucoin revealed, nearly 115 million Indians own or have traded cryptocurrencies.
This represents 15% of the country’s working population (18 to 60 years old). With these encouraging numbers, it is certain that Indians are not about to get rid of cryptos. Their adoption is expected to continue in the coming months and as proof, the survey reports 10% of Indians planning to enter the sector in the next six months. If such a scenario materializes, no less than 25% of the Indian population will be exposed to cryptocurrencies.
A few years ago, several institutions including the IMF were fiercely fighting the crypto sector. Today, there is a kind of unanimity around the need to regulate and not repress the use of digital assets. Perhaps the time has come to start taking an interest in this sector that many present, and not without reason, as the future of finance.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.