Finance Minister Nirmala Sitharaman highlighted the significance of global cooperation in addressing the threats posed by cryptocurrency threats and other cyber threats. Speaking at the Global Fintech Fest, Sitharaman stressed that despite the implementation of various security measures, new methods of cyberattacks continue to emerge. She referred to cryptocurrencies as both a threat and an opportunity, underscoring the need for responsible global financial regulation.
Cryptocurrency threats has been a contentious issue in India, with Reserve Bank of India (RBI) Governor Shaktikanta Das expressing concerns about its impact on macroeconomic and financial stability. In March, the finance ministry brought the exchange, transfer, safekeeping, or administration of cryptocurrencies under the ambit of the Prevention of Money Laundering Act (PMLA).
India’s Presidency of the G20 has placed the regulation and understanding of crypto assets on the agenda, and active discussions are ongoing. Content-rich papers from institutions like the International Monetary Fund (IMF), Financial Stability Board (FSB), and Organization for Economic Co-operation and Development (OECD) are being considered.
Sitharaman highlighted the need to discuss threats to a responsible global financial ecosystem, encompassing physical border, cyber, and crypto threats. She urged fintech companies to invest significantly in robust security measures, including advanced encryption, to safeguard user data and financial transactions.
“A secured system is what will build trust and therefore that is a must for the financial ecosystem to truly flourish. India can lead in making the financial ecosystem inclusive, resilient, and sustainable,” Sitharaman emphasized. She stressed the importance of global cooperation, as financial technology transcends borders and collaborative ventures open up access to diverse customer bases.
Sitharaman also mentioned India’s focus on enhancing cross-border payment arrangements, given the country’s status as the largest remittance receiver. She encouraged the fintech industry to take a lead in cross-border payment systems, leveraging India’s success in digital payments.
In addition, Sitharaman highlighted the formalization of India’s economy, with significant increases in income tax filings and the proliferation of demat accounts and mutual fund systematic investment plans (SIPs). These developments indicate the growth of the Indian financial ecosystem and its potential for further expansion.
The finance minister’s remarks underscore the evolving landscape of financial technology and the need for coordinated efforts to address emerging challenges in the digital age.