Opinion

Indian government uses G20 presidency to tout coordinated crypto rules

Indian government uses G20 presidency to tout coordinated crypto rules

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The Indian government is using its time as president of the G20 nations to drum up support for globally coordinated regulation of crypto assets.

Getting tough on digital assets

The Indian government, along with its central bank, has been a harsh critic of cryptocurrencies for some time now. Therefore, it comes as little surprise that India is using its time as president of the G20 nations to try to implement coordinated regulations that will get tough on digital assets.

As India uses its influence to suppress cryptocurrencies, ably assisted by global financial institutions such as the International Monetary Fund (IMF) and the Financial Stability Board (FSB) among others, it often resorts to claims that it is doing so in order to ensure monetary stability, and it continually refers back to the FTX collapse as a reason for doing so.

Protecting the banking system?

Ensuring monetary stability might well mean protecting a banking system that is on the verge of collapse - only able to support itself by printed money out of the magician’s hat wielded by the US Federal Reserve. This ‘money’ out of thin air is claimed to “cost nothing”, and for the Federal Reserve this may well be the case. However, for the vast majority of the world’s citizens this means more currency flooding the economy and ‘debasement’ of their purchasing power. 

As for the FTX debacle, which is used by those doing the bidding of the bankers to tarnish the entire crypto industry, there are many unanswered questions as to how Sam Bankman’s empire grew out of nothing, and how such fraud was allowed to take place right under the nose of the SEC.

Risks

Be that as it may, India will go ahead and promote a “Synthesis Paper” which is being produced by the IMF and the FSB that will enable the perceived ‘risks’ of cryptocurrencies to be dealt with.

These ‘risks’ might include that the people use their fiat currencies to buy such assets as bitcoin (God forbid) in order to protect themselves from the crushing debasement that is taking place. 

The risks do include the possibility of a “spillover” from crypto into the traditional financial system. But how a fledgling ecosystem of around $1.2 trillion is going to affect the traditional financial system of $hundreds of trillions remains to be seen.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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