Finance Minister Nirmala Sitharaman, while addressing an event at Stanford Medicine, said that India will not rush to finalize policy on cryptocurrencies and virtual digital assets, but will take an informed decision after deliberations in multilateral fora.
In a fireside chat organized by the university, Sitharaman said that while blockchain has the potential to contribute positively to the economy, it can also be used for money laundering or terror financing activities.
“Blockchain is full of possibilities not only in the payments sector, but in many other areas as well. We do not intend to harm the ecosystem in any way, or even say that we do not need it. but to define ourselves how we need them and how their development should be facilitated and how we are going to handle it…(This is because) because it takes as much as it takes to make a positive contribution to the economy. The more likely it is to be manipulated for equally desirable purposes—be it money laundering or leading to terror financing.”
These are some of the concerns, not only for India, but for many other countries, Sitharaman said. “It will take time for all of us to make sure … within the available information given, we are making a prudent decision … and it cannot be rushed.”
On sanctions, she said such moves always have a collateral effect on many other countries due to global interconnectivity in the digital age, “and may need to be taken into account when making decisions”.
Since the invasion of Ukraine on February 24, the US has imposed several rounds of sanctions on Russia, affecting the operations of banks and other institutions. “Sanctions always have an impact on the economy, a collateral effect not only of the country on which the sanctions are imposed, but of many others. I think this situation is even greater now because we are more interconnected globally than ever before.”
“When decisions are made to impose sanctions, these sets of unintended consequences may have to be contained in the digital age.”
On India’s stand on Russia, Sitharaman said her balanced stance was not only because of economic interests, but also because of the security aspect, as it shares borders with some countries. “The balance that India has taken in every single decision in this context is because of India’s geopolitical position… because we share land borders with some of these countries. During the decades when the situation arose. .. India was left to defend its economic, land and border interests.”
At a separate industry event, Sitharaman assured investors in the US that India is prepared to understand the “pain points” and address any hurdles they face appropriately. Speaking at a roundtable on ‘Investing in India’s Digital Revolution’ in Palo Alto, California, the Minister urged interested investors in India to join the Startup Cell of the Department for Promotion of Industry and Internal Trade. “FM Sitharaman encouraged continued engagement with investors to understand and address their concerns. The FM said she is open to suggestions, understands the pain points, and offers necessary redressal wherever possible. Doing so,” the Finance Ministry said in a tweet.