Crypto dilemma: FM cautions the world against risk of money laundering, terror-funding

Finance Minister Nirmala Sitharaman points out cryptocurrency risk as it could be used in money laundering and financing terror

The world is abuzz with the latest revolution in the fintech arena, and has been sailing hand-in-hand with the cryptocurrency boom. However, India’s Finance Minister Nirmala Sitharaman would prefer to tread cautiously when it comes to crypto.

Sitharaman made it crystal clear at a seminar during the ongoing spring meet of the International Monetary Fund (IMF) a while ago, stating that cryptocurrency poses a big risk and that could be in the money laundering terrain and its possible use in financing terror.

The Finance Minister addressing the IMF categorically stated that she thinks the biggest risk for all nations will be the money laundering aspect and also the aspect of currency being used for financing terror. The words of caution come at a time when the cryptocurrency terrain has been flooded with digital money of the newest kind.

Tech solutions needed to prevent crypto misuse

Putting forward solutions to combat the use of crypto in money laundering and terror funding, Nirmala SItharaman sought preventive measures through the deployment of the right technology. She was quoted by a report, saying: “… 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 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 Indian Finance Minister is in the US and had arrived in Washington to attend the Spring Meetings at the World Bank, the G20 Finance Ministers meeting and the Central Bank Governor Meeting. The ‘Money at a Crossroad’ discussion hosted by IMF Managing Director Kristalina Georgieva.

India’s digital leap during the pandemic

Sitharaman also dwelt upon the digital leap the India has effectively made over the past few years. Holding aloft the Indian administration’s efforts to build the digital infrastructure framework over the last decade, she picked the high digital adoption rate in India during the Covid-19 pandemic. As per the 2019 statistics, India’s digital adoption rate has been about 85 per cent. This is in comparison to the 64 percent globally.

India’s digital leap has been good during the pandemic in such a way that the country has been put to the digital test. And, India had successfully made it possible for the common man to adopt digital technology in a fruitful manner.

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