Mumbai: At the commencement of the annual Global Fintech Fest 2023, Finance Minister Nirmala Sitharaman underscored the significance of accessible technology and international cooperation in forging an inclusive, resilient, and sustainable financial ecosystem.
In her address, the Finance Minister highlighted that while some nations effectively utilise technology, others employ it strategically, some selectively, and some are still striving to reach the milestone where technology can significantly impact the financial ecosystem. Therefore, in this ever-evolving “multipolar world” of technology, Sithraman stressed that the paramount challenge lies in constructing a responsible financial ecosystem, with global cooperation deemed an absolute necessity at this juncture.
Amidst the ongoing global discourse on globalisation, the finance minister identified another obstacle to creating an equitable financial world: disparities. These disparities encompass variations in temptation, wealth, demography, access, well-being, and digital literacy.
Regarding the challenges posed by cryptocurrencies, Sitharaman emphasised the need for global cooperation and a regulatory framework to counter threats emanating from the cryptocurrency space. She remarked, “As much as you build firewalls, there are more and more new ways in which attacks are being made. Crypto is a threat as well as an opportunity,” during her address at the Global Fintech Fest in Mumbai.
Cryptocurrencies have been a contentious issue in India for some time. The Reserve Bank of India’s governor, Shaktikanta Das, has expressed concerns about digital tokens, citing potential threats to financial stability. In March, the finance ministry announced that the exchange, transfer, safekeeping, or administration of cryptocurrencies would fall under the ambit of the Prevention of Money Laundering Act (PMLA).
Furthermore, Sitharaman highlighted the transnational nature of financial technology in an interconnected world, emphasising the critical importance of forming cross-border partnerships. Collaborative initiatives, she noted, have the potential to unlock access to a vast and diverse customer base, expediting market participation and penetration.
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