India’s Minister Of Finance Is Skeptical About Blockchain Tech’s Use For Tradable Assets

On October 16, 2022, during a visit to the U.S, Nirmala Sitharaman, India’s Finance Minister, expressed doubts over the purpose of blockchain technology for tradable assets. However, she clarified that the country is open to using the technology for other sectors.

Sitharaman Speaks On The Misuse Of The Technology

According to Nirmala Sitharaman, this technology is valuable and should be protected, but she opines that it shouldn’t be used for tradable assets. The Minister questions utilizing this technology for trading already created assets, whether buying or selling them and making profits. Sitharaman doubts whether countries have established the real purpose of blockchain technology.

Speaking on whether the technology is of any use, the Minister affirms that India will likely adopt it in other sectors, adding that the fintech sector will benefit from it. However, she said that the technology is prone to misuse.

Sitharaman noted that the Enforcement Directorate (ED) had detected various illegal financial transactions through crypto. She added that blockchain tech is being abused and enables the ease of these unlawful activities.

The Minister is currently in the United States to attend the Annual Meeting of the G20 Finance Ministers, the International Monetary Fund (IMF), Central Bank Governors (FMCBG) and the World Bank. According to her, India would likely address blockchain technology use issues with the G20 or the world bank. She added that there is a need for regulation globally, and no single country might be able to handle it alone.

Industry Players Comment

The co-founder of India Blockchain Forum, Sharat Chandra, said that the Minister’s acknowledgment of blockchain technology is good. However, the technology shouldn’t suffer because of regulation, and he encouraged developers in the crypto space to keep building.

Another important industry Player in India, Rajagopal Menon, vice president of the crypto exchange, WazirX, said that if India can effectively adopt Blockchain technology, its dream of a $5 trillion Atmanirbhar Bharat would be close.

Others are excited about India’s G20 presidential election soon, believing it will help the country’s stance on technology.

Ashish Singhal, a top executive with a leading local crypto exchange, CoinSwitch Kuber, says what is happening now is similar to what happened in the 1990s during the rise of the internet, which gave birth to new business models. He believes countries that adapt swiftly now will be leaders in the crypto space later.

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