Crypto assets need immediate attention: FM Sitharaman

During her ongoing 7-day visit to the US, Finance Minister Nirmala Sitharaman emphasised the need for immediate action on cryptocurrency. According to the Ministry of Finance, while attending a session on “Microfinancial implications of crypto assets” at IMF (International Monetary Fund) headquarters on Friday, Sitharaman said that crypto assets are an issue that requires immediate attention from the G20 countries.

"Our response has to ensure that we do not lose any potential benefits while protecting our economies from harm," she added.

Sitharaman also said that G20 acknowledges the work of the International Monetary Fund and Financial Stability Board in bringing out key elements of policy and regulatory framework and that a synthesis paper that would integrate macroeconomic and regulatory perspectives of crypto assets is required.

"FM Smt. @nsitharaman was glad to note that there was consensus in the #G20FMCBG Bengaluru meeting to have a globally #CoordinatedPolicy response on #CryptoAssets that takes into consideration the full range of risks posed by them, including the risks specific to #EMDEs," Finance Ministry said in a tweet.

Earlier in the day, while attending the plenary meeting at the IMF headquarters, the finance minister said that the Indian economy is on the course of growth and is expected to grow at 7% in FY23.

The second advance estimate released by the National Statistical Office (NSO) in February had placed India's real gross domestic product (GDP) growth at 7% in FY23. Global organisations such as IMF and World Bank have projected the country to be one of the fastest-growing economies in the world.

RBI Governor Shaktikanta Das had earlier said that India's economic activity remains resilient and the higher rabi production has brightened the prospects for the agriculture sector and rural demand. 

Earlier this week, Sitharaman said that despite India’s projected growth rate of over 6% in FY24, the country remains concerned about the global economic outlook and geopolitical environment. Sitharaman also said that the World Bank should continue to work for its vision of 'A World Free of Poverty.'

While speaking on  Global Sovereign Debt Roundtable, Sitharaman emphasised India’s commitment as part of the G20 president to all global efforts to address growing debt vulnerabilities. She also called for timely debt restructuring as the solution to the global debt crisis is closely intertwined with addressing the global poverty challenge, noting that it adversely affects the most indebted countries as they also house the poorest people.

 Sitharaman also called for further cooperation in addressing global economic challenges, including climate change. She also highlighted the role of G-20, QUAD and IPEF in fostering these ties. The finance minister also emphasised the importance of coordinated global action to address debt vulnerability in low and middle-income countries, besides the need for financial support to help developing economies achieve climate goals.