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nirmala sitharaman: Tech to deal with crypto must keep evolving: FM Nirmala Sitharaman

NEW DELHI: Finance minister Nirmala Sitharaman, in apanel discussion with IMF managing director Kristalina Georgieva early on Tuesday, said that the technology to deal with crypto assets needs to continuously evolve.
“Regulation using technology is the only answer. It will have to be so adept, that it is not behind the curve, but be sure that it is on the top of it. And that’s not possible if any one country thinks that it can handle it. It has to be across the board,” the FM said.
Indian authorities are working on a legislation on crypto assets but are unclear if a full-fledged ban, as was advocated by an expert panel as well as the RBI, will work unless other countries are also on board. For the time being, the government has imposed a tax on crypto transactions, including a 1% tax deduction at source, which the FM said was essential for es- tablishing a money trail.
She also said that the evolution of technology and schemes — from Aadhaar to Jan Dhan — had prompted her to announce the central bank digital currency (CBDC) in the Budget, which is expected to be rolled out by the RBI in the current fiscal.
While acknowledging some of the concerns, IMF managing director Kristalina Georgieva said that the multilateral agency will expand its work on digital money with a special focus on interoperability of CBDC, regulation of private digital currencies and risks from cyberattacks. Although she was upbeat about CBDC, the IMF chief appeared worried over private digital currencies posing a threat to the currency sovereignty of smaller economies.

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