Recent innovation in digital finance may pose risk of destabilisation: Modi

Prime Minister Narendra Modi called upon G20 member nations to develop standards and regulations for cryptocurrencies to mitigate the risks of destabilisation and misuse posed by innovation in digital finance.

The prime minister made the remarks while addressing the first meeting of finance ministers and central bank governors under India's G20 presidency, virtually, on Friday.

"Some recent innovations in digital finance also pose risks of destabilisation and misuse. I hope that you will explore how the power of technology can be used for good while developing standards to regulate its possible risks," Modi said.

Highlighting the growing dominance of technology in the world of finance, the prime minister said digital payments have enabled contactless and seamless transactions through the Covid pandemic.

India has created a highly secure, highly trusted and highly efficient public digital infrastructure in its digital payments ecosystem over the past few years, he noted.

“Our digital payments ecosystem has been developed as a free public good. It has radically transformed governance, financial inclusion and ease of living in the country. The new system created is a path-breaking digital payments platform, UPI. Examples like UPI can be templates for many other countries too. We would be happy to share our experience with the world and the G20 can be a vehicle for this,” he said.

Since the  first meeting of finance ministers and central bank governors is being held in Bengaluru, the technology capital of India, Modi said the G20 participants could experience first-hand how Indian consumers have embraced digital payments.