Finance Minister says global cooperation required to combat cyber threats

Finance Minister, Nirmala Sitharaman said that in order to tackle cryptocurrencies and other threats originating from cyber space, global coopoeration is essential, outlining a topic that is set to be a key Indian focus at a Group of 20 summit in New Delhi this weekend.

“As much as you build firewalls, there are more and more newer ways in which attacks are being made. Crypto (is a) threat as well as an opportunity," Sitharaman said at a Global Fintech Fest.

Cryptocurrencies, she said, are also an example of how, unless global cooperation works out well, the world is not going to be able to have a responsible financial ecosystem that can regulate it.

“India’s Presidency has put on table, in the G20, issues related to regulating or understanding that there should be a framework for handling issues related to crypto assets. Active discussions are happening. Content-rich papers from institutions like the International Monetary Fund (IMF), Financial Stability Board (FSB) and Organization for Economic Co-operation and Development (OECD) are all being discussed on various issues," she said ahead of the 8-10 September gathering of G20 leaders.

She mentioned the need to discuss threats to a responsible financial global ecosystem and be well seized of the problem, citing physical border, cyber and crypto threats.

According to her, fintech companies must heavily invest in robust security measures, utilizing advanced encryption and other measures to protect user-data and financial transactions.

“A secured system is what will build trust and therefore that is a must for the financial ecosystem to truly flourish. India can lead in making the financial ecosystem inclusive, resilient and sustainable," she said, adding that global cooperation is the key to making it possible. In her view, financial technology goes beyond geographical boundaries in an interconnected world and stresses upon cross-border partnerships. Also, collaborative ventures provide access to a vast and diverse customer-base, accelerating market participation and penetration.

She said annual global cross border payments are estimated at $20 trillion, incurring $120 billion in transaction cost. India, she said, is the largest remittance receiver with about $100 billion worth of remittance taking 2022 as the base.

“The high remittances are a motivating factor in our pursuit of enhancing cross- border payment arrangements. Enhancing cross-border payments has been India’s priority, also in the G20 we are talking about it," said Sitharaman.

Mentioning about the size of the market in India, Sitharaman asked the fintech industry to take a strong lead in cross-border payment systems, on the back of the successful experience in digital payments.