FameEX Hot Topics | Indian PM Proposes Global Crypto Framework: Emphasizing Unified Strategy, Adoption, and Democratization

Indian Prime Minister Narendra Modi has emphasized the imperative for a comprehensive and globally coordinated regulatory framework for cryptocurrencies. In an interview with Business Today, Modi highlighted the inevitability of technological progress and underscored the need to embrace change rather than resist it. He stressed that the key areas of emphasis should revolve around adoption, democratization, and a unified approach to both cryptocurrencies and emerging technologies.

Modi's comments came after his participation in the BRICS summit held in South Africa. During the summit, he took the opportunity to share his insights regarding cryptocurrency regulation. He firmly stated that regulatory efforts should not be confined to individual countries or limited groups of nations. Instead, he advocated for the establishment of a consensus-based global model that effectively addresses the concerns and interests of countries across the Global South. 

Drawing parallels with the aviation industry's global regulatory mechanisms, Modi emphasized the existence of universally accepted rules and regulations governing air traffic control and air security. He proposed a similar approach for emerging technologies, including cryptocurrencies, suggesting that a cohesive and efficient regulatory framework on a global scale would be instrumental in shaping their responsible growth.

As India currently holds the G20 presidency, Modi elaborated on the considerable efforts dedicated to deliberations on both cryptocurrency and debt agendas. He highlighted that the discussions around cryptocurrencies within the G20 have expanded beyond merely ensuring financial stability, encompassing their broader macroeconomic implications, particularly for emerging markets and developing economies. Under India's G20 leadership, a consensus has been achieved on these cryptocurrency-related matters, offering guidance to standard-setting bodies. During this tenure, Modi noted that a series of enriching seminars and discussions have been conducted, contributing to a deeper understanding of crypto assets and their potential impact.

Noteworthy is India's recent release of a "Presidency Note," serving as input for establishing a roadmap toward a global framework for crypto assets. In alignment with this effort, the Financial Stability Board (FSB) introduced proposed guidelines for a worldwide regulatory framework for crypto assets. Additionally, in April, G20 finance ministers and central bank governors collectively emphasized the need for globally coordinated policy responses, acknowledging that cryptocurrency regulation should transcend regional boundaries.

Modi's proactive stance in advocating a comprehensive international framework and collaborative regulatory approaches underscores the importance of effectively addressing the challenges and opportunities that cryptocurrencies present on a global stage.

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