Speaking at an event in Bengaluru, India’s finance minister, Nirmala Sitharaman, said that India is not opposed to blockchain technology, but the currency must be regulated by the government or the central bank.
Otherwise, it could have huge spillovers all over the world like those companies that have gone bankrupt, like FTX.
India’s central bank, the Reserve Bank of India, has launched a retail and wholesale central bank digital currency pilot.
According to Sitharaman, the digital rupee aims to improve cross-border and batch payments to minimize arbitrage losses.
India currently chairs the G20, an intergovernmental forum of the world’s major economies, and has cryptocurrencies and their regulation on the agenda for discussion.