During an event in Bengaluru, India, the Finance Minister, Smt. Nirmala Sitharaman, expressed that India is not against financial technology but stressed the importance of digital currency being backed by the government or the central bank. According to the Finance Minister, without proper guidance, there is a risk of events like FTX that caused massive spillover effects worldwide.
Sitharaman highlighted that India was an early adopter of digital currency, and the Reserve Bank of India has been testing its retail and wholesale CBDC to facilitate cross-border payments in bulk. She warned that the technology must be used responsibly and cautiously under proper regulation, despite its potential.
The Finance Minister also pointed out that digital currency technology has many other applications beyond currency, and India should take advantage of them to promote collective benefit. She emphasized that the government or central bank should lead to ensuring the stability and security of the digital currency market.
India is taking a measured approach to digital currency to avoid the pitfalls of unregulated markets. Cryptocurrency proponents suggest that other countries take a cue from India and regulate the digital currency market to prevent the chaos witnessed in the past.
Furthermore, India plans to introduce lessons on cryptocurrency and artificial intelligence in some school curriculums next academic year to prepare students for the digital world and keep up with technological advancements.