The Minister for Finance in the Republic of India has spoken and Nirmala Sitharaman believes that formulating cryptocurrency regulations is not an easy fiat for any government despite the growing need to rush.
Sitharaman stated that the Governor of the Indian Reserve Bank has spoken about the upcoming cryptocurrency by Facebook, Libra, at International Monetary Fund’s (IMF) conventions and cryptocurrency regulations.
She felt that many countries have been backing out, and cautioning others from rushing into the idea of utilization of cryptocurrencies on a similar scale.
Cryptocurrency regulations in India
India’s Reserve Bank (RBI), the central bank of India, has banned cryptocurrencies in the region in the absence of proper cryptocurrency regulations in India. The Supreme Court of India is due to hear the case soon.
The Indian finance minister further stated that a number of countries suggested that no one should use the term “stable currency” when referring to cryptocurrencies; instead, the term “virtual currency” should be used.
The Indian minister stated that the virtual currencies were also backed at the meetings, but the majority of them laid out various challenges that may potentially turn into issues after normalizing the use of these digital currencies. She said that everyone was moving on with the topic very cautiously.
While, Kristalina Ivanova Georgieva-Kinova is the managing director of the International Monetary Fund (IMF), who previously worked as the Chief Executive Officer of the World Bank, has stated that the organization has been working with other organizations over the risks and the advantages of crypto assets.
The MD claimed that the organization observes a non-biased approach, considering cost, convenience, financial inclusion, and customer privacy. She admitted that the cryptocurrency can also be exploited.
Ivanova noted the fact that Libra’s system is falsely implemented over the very large user-base of Facebook. And further that it will largely affect the stability of smaller currencies if users start dumping their country’s currencies in exchange for Facebook’s cryptocurrency.
The MD stated that the organization is focusing on the idea of digitization of all the currencies with their evolution, keeping in mind, the stability of finances and currencies.