Crypto on Mind & G20 Agenda: India Convinces Others of Need for Global Framework on Digital Currency

The dark and uncertain, but unavoidable world of cryptocurrency has figured prominently in the year-long G20 deliberations of the finance ministry.

In a big win, India has managed to convince the participating countries that cryptocurrency must be on the agenda. Following India’s convincing arguments, most countries agreed, after initial reluctance by a few.

It was argued that cryptocurrency is an inevitable choice for many and has gained popularity. The vast world of internet, however, allows free and unfettered use of cryptocurrency. There have been reports of its misuse and even involvement in criminal activities and acts of terror.

India has been working on a crypto regulation law and has suggested monitoring through the Reserve Bank of India (RBI) and a similar regulatory mechanism.

At the B20 summit in August, Prime Minister Narendra Modi said, “There is a challenge associated with cryptocurrencies. In this matter, maximum integrated approach is needed. There is a need to prepare a global framework which should take care of interests of all stakeholders."

While trading in cryptocurrency is allowed, the Indian government has imposed a 30% tax on it. However, it does not have legal tender and can’t be used for banking purposes.

Sources say while India does not need to depend on agreement of G-20 countries to frame crypto law, it has pushed for it to be on the agenda. India has said: “There cannot be only one country which will handle the crypto issue. It has sweeping global macroeconomic implications, hence we need all hands on deck to monitor it."

India has pushed for and convinced the need for a common template for crypto to the G20 countries. It is quite likely that by the time the summit in New Delhi ends, there will be a consensus on crypto.

Because none of the countries can afford danger to their security.