India’s Finance Minister expresses skepticism over blockchain tech for tradeable assets

Nirmala Sitharaman, India’s finance minister, is unsure whether blockchain technology would be used for tradeable assets. In the meantime, the nation pursues international regulatory cooperation and advances the digital rupee CBDC.

Nirmala Sitharaman, India’s finance minister, stated that the government was uneasy about adopting blockchain technology for tradeable assets.

During her visit to the United States, Sitharaman made the remarks while attending the G20 Finance Ministers and Central Bank Governor (FMCBG) meeting as well as the IMF and World Bank Annual Meetings.

The country’s fintech sector should prosper, and thus the finance minister is delighted to permit its usage for a variety of purposes. She was unambiguous in stating that she thought it would result in technology abuse, though.

She also mentioned the need for international cooperation, which she believes is essential in the area of regulation. She made it clear that India would have crypto rules and would work with the G20, World Bank, and others to talk about the issue.

Industry insiders have responded to the comments by stating that regulation of cryptocurrencies will encourage innovation.

Others noted that Sitharaman’s criticism of the economy was fundamental to the technology.

At the next G20 summit, India will address cryptocurrency legislation, but officials are already preparing for a potential revision of the laws.

The nation might impose a Goods and Services Tax (GST) on the asset class, which would be in addition to India’s existing onerous taxation on cryptocurrencies. There is no proof of this, and the tax might range from 18 to 22%.