The biggest risk of cryptocurrencies globally is that they can be used for money laundering and to finance terrorism, Union Minister of Finance Nirmala Sitharaman said on Monday, ANI reported.
At the Spring Meetings of the International Monetary Fund and the World Bank in Washington on Monday, Sitharaman said regulation via technology was the only answer to deal with cryptocurrencies. “Regulation using technology will have to be so adept, that it has to be not behind the curve, but be sure that it is on the top of it,” she added.
The minister said that the regulating cryptocurrencies would only be possible with the support of countries across the board.
Last month, the Indian government had said it has no plans to introduce cryptocurrencies. The Reserve Bank of India had also raised “serious concerns” around private cryptocurrencies, saying that these could cause financial instability.
In 2021, Prime Minister Narendra Modi had also sought cooperation from countries to ensure cryptocurrencies like Bitcoin do not “end up in the wrong hands”
Nirmala Sitharaman meets IMF chief
Meanwhile, International Monetary Fund Managing Director Kristalina Georgieva met Sitharaman and raised concerns about the impact of rising energy prices on the global economy.
Georgieva also praised India’s well-targeted policy mix that helped the country stay resilient within a limited fiscal space, PTI reported.
She appreciated India’s support to Sri Lanka, which is experiencing its worst foreign exchange crisis since its Independence. Georgieva said that the International Monetary Fund will continue to support the island nation as well.
Sitharaman met Sri Lanka’s outgoing Finance Minister Ali Sabry on the sidelines of the Spring Meetings and discussed ways to mitigate the challenges faced by the island nation, PTI reported.
Sitharaman will take part in bilateral meetings with several countries, including South Korea, Sri Lanka and South Africa, said the World Bank director. She met with her Indonesian counterpart Mulyani Indrawati on the sidelines of the G20 meet.