The government will proceed cautiously with cryptocurrencies and is not rushing into anything. However, the synthesis paper by the International Monetary Fund (IMF) and Financial Stability Board (FSB) recommendations was accepted by the G20 finance minister and central bank governors in Marrakech last week.
The government is anticipated to hire specialists to evaluate the potential effects of recommendations on each of the parameters on India and offer solutions, even though the RBI has made its concerns publicly known.
The synthesis paper was submitted in advance of the G20 leaders’ conference in Delhi last month. At least nine concerns were noted in the synthesis paper, including those related to financial and macro stability, monetary policy, fraud, and potential usage by criminals.
It advocated for the licensing and regulation of digital assets. It suggested that nations follow the guidelines set forth by the Financial Action Task Force (FATF) to prevent the financing of terrorism and money laundering.
According to officials, the government is only able to move once all risks have been taken and a robust system is in place because doing so could have detrimental effects on the economy. The government will consult regulators like the RBI and Sebi for the next round of responses, based on the evaluation by experts or panels that may be formed.
RBI governor Shaktikanta Das had issued a warning against jumping into things and advised against stablecoins and cryptocurrency assets while in Marrakech