India to Create Standard Operating Procedures for Crypto

On Oct 17, 2022 at 10:49 am UTC by · 3 mins read

Sitharaman has always had reservations about crypto, clamouring for the need for global regulators to take a cautious approach to the asset class.

India has plans to create a set of standard operating procedures (SOPs) that will govern the use and transfer of crypto all over the world. According to the country’s finance minister, Nirmala Sitharaman, the plans will be hatched during the nation’s tenure as G20 president. That is between 1st December 2022, and 30th November 2023.

Sitharaman has always had reservations about crypto. She earlier mentioned the need for global regulators to take a cautious approach to cryptocurrencies, citing the dangers that may come along with mainstream adoption. However, more recently, she mentioned to reporters that crypto will be a big part of India’s agenda during its G20 presidency.

She mentioned that studies are currently ongoing as nations continue to understand crypto in their individual ways. According to her, the outcomes of those studies will be put together and deliberated upon to create a framework. She said in part:

“Hopefully… we will arrive at a framework or SOP, so that globally, countries can have a technology driven regulatory framework.”

On several occasions, Sitharaman has insisted that crypto poses a threat to global financial stability. And seeing as crypto has always been closely linked to the global economic state, her call for collective efforts toward crypto regulation may be understandable.

For what it’s worth, however, there is no better platform for India to advance its views of crypto than the G20. The group is a global conference where member nations meet to address topical issues related to the global economy.

Effective crypto regulation requires a collective effort

According to Sitharaman, no single country can effectively handle crypto on its own. And interestingly, the G20 nations appear to agree with that thought, according to an earlier report by Coinspeaker.

Sitharaman admits that nations can regulate platforms and trading, at least, to an extent. But then, she also believes there is no saying what purposes cryptocurrencies are being used for by individuals.

For the skepticism that surrounds crypto and its use, however, nations like India are opting to develop their individual CBDCs. That is a central bank-issued digital currency.

The Reserve Bank of India (RBI) published a list of features for its CBDC (e-rupee) on October 7 in a 51-page document. The country also shared the rationale behind its decision to create the CBDC. According to India, safety and trust on the part of consumers are some of its biggest motivations. Other motivations for its CBDC include liquidity, reduced operational costs and more financial inclusion across its population. Meanwhile, the RBI plans to roll out the e-rupee soon in a testing phase.

Share:

Related Articles

ECB Unveils Blockchain Payment System to Counter US Stablecoin Dominance

By February 20th, 2025

The ECB’s move is partly driven by concerns over the growing adoption of US dollar-backed stablecoins, which could increase American influence in the global financial system.

Federal Reserve Chair Jerome Powell Confirms No Plans For US CBDC During His Tenure

By February 12th, 2025

Fed Chair Powell ruled out a US CBDC under his tenure, backing the Trump administration’s push for stablecoins over digital fiat.

Indian Digital Rupee Expands Beyond Banks as Cred Joins CBDC Program

By January 28th, 2025

India’s central bank takes a significant step in digital currency adoption by collaborating with Cred to bring the e-Rupee CBDC to retail consumers.

Exit mobile version