G20 Members Consider Banning Cryptocurrencies, Central Bank Of India Governor Says

Governor of the Central Bank of India invited G20 members to ban cryptocurrencies. (Photo; Doc. Unsplash)

JAKARTA - In a press conference after the Finance Ministers and First G20 Finance Ministers and Central Bank Governors (FMCBG) meeting, India's Finance Minister Nirmala Sitharaman stated that India has long adhered to the position that anything outside of a central bank is not currency.

According to Sitharaman, India's position on crypto has support from many different members of the G20. India has even launched its own CBDC in an effort to counteract competition from cryptocurrencies.

However, there is a discussion regarding the international regulation of crypto assets that will be faced at the G20 Summit. Reserve Bank of India (RBI) Governor Shaktikanta Das said that some G20 members are calling to consider a total ban on cryptocurrencies.

While there are several options under consideration in crypto regulations, Governor Das said it was too early to talk about the final architecture.

The Governor of RBI also expressed the view that crypto assets should be regulated with the aim of controlling and checking their proliferation and controlling risks. There is an opinion that the prohibition or prohibition option must also be considered. However, according to Governor Das, this issue is still in the development stage.

The Governor of RBI also stressed that cryptocurrencies involve some major risks to financial stability, cyber security issues, and overall financial stability. In fact, the Governor of the central bank has previously said that the next big financial crisis will come from cryptocurrencies.

Therefore, the G20 countries must move together to develop a coordinated and comprehensive policy approach in dealing with crypto assets taking into account macroeconomic and regulatory perspectives.

With international discussions on crypto assets evolving, India will chair the G20 Summit in September to further discuss this international regulation. India, as a country that has taken a position on crypto regulation, has an important role to play in establishing a more coordinated and comprehensive international regulation.