Consultation paper on crypto fairly ready, consulted organisations like IMF, World Bank: Economic Affairs Secretary

New Delhi: Days after the Reserve Bank of India said that it has adopted a graded approach towards the launch of central bank digital currency in the country, Economic Affairs Secretary Ajay Seth on Monday shared that the government is almost ready with its consultation paper on crypto.

Adding that they have gone into a deep dive into this, Seth told reporters that the consultation paper is fairly ready and for this they consulted not just domestic stakeholders but also organisations like IMF, World Bank.

“We hope we'll soon be in a position to finalise the consultation paper," he added. The official further noted that there has to be a broad framework of participation of all countries on the regulation of cryptocurrency.

His statement is in congruence with what Union Finance Minister Nirmala Sitharaman had last month said during a meeting with International Monetary Fund (IMF) managing director Kristalina Georgieva. During the meeting held on the sidelines of the ongoing annual spring meetings of the IMF and the World Bank, Sitharaman flagged concerns surrounding the use of cryptocurrencies in money laundering and terror financing and called for a framework for the regulation of cryptos.

While adding that all the countries need to come together to safeguard the use of digital assets, FM had said, "I think regulation using technology is the only answer. Regulation using technology will have to be so adept that it has to be not behind the curve, but be sure that it is on top of it.”

Seth echoed the same and said that we are also beginning our work for global regulations as well, whatever we do even countries that have gone to the extent to even prohibited that can't succeed unless there is global consensus around that. “We have consulted them and we hope we will soon be in a position to finalise our consultation paper,” the Economic Affairs Secretary highlighted.