Crypto need an ‘international framework’ to deal with risks: RBI Governor Das at G20
2 min read . Updated: 26 Feb 2023, 05:02 AM IST
Premium- The IMF and the Financial Stability Board are working on it. There will be a synthesis paper between the FSB and the IMF on this whole issue, Das said
RBI Governor Shaktikanta Das has once again pointed out that currently, there is risks associated with cryptocurrencies or crypto assets, and has mentioned that there is need for an international framework to deal with these risks.
Das said, "there is now wide recognition and acceptance of the fact that cryptocurrencies, or crypto assets, or crypto products, or by whatever name you call it to involve several major risks to financial stability, to monetary systems, to cyber security issues, and to overall financial stability and they need to be looked at."
"Going forward, the effort is to develop an international framework, an international architecture to deal with this problem. The IMF and the Financial Stability Board are working on it. There will be a synthesis paper between the FSB and the IMF on this whole issue. And they will form the basis for future discussions to develop an international architecture," Das said.
Das was speaking in Bengaluru at the conclusion of the two-day meeting of finance ministers and central bank governors of G20 countries.
The RBI Governor also mentioned that there are multiple views and options under consideration, and it is too early to predict what the eventual architecture will be.
"Multiple options are under consideration. But it's too early to speak on what will be the eventual architecture. But yes, there were views that it should be regulated with a view to control and check its proliferation, to control its risks," the RBI Governor said.
"Let us see wait for the discussions to go forward and we will see how it shapes up. In any case, ultimately, every country is a sovereign country. Every country is sovereign. The countries will take their decisions. But once something is agreed in the G20, naturally it would be expected that countries would, by and large, follow whatever is the agreed position," he added.
Despite the rapid evolution of the crypto universe, there is no comprehensive global policy framework for crypto assets. Given the concerns over greater interconnectedness between crypto assets and the traditional financial sector as well as the complexity and volatility around crypto assets, policymakers are calling for tighter regulation.