Global Regulation Essential for Currency Tokenization, Says Nirmala Sitharaman

July 27, 2025 - 08:36

Finance Minister Nirmala Sitharaman has emphasized the necessity for global oversight in the tokenization of currency. Speaking at a recent event, she highlighted that multilateral institutions have consistently played a crucial role in maintaining stability and order in the financial system over the past century. Sitharaman pointed out that as digital currencies and tokenization gain traction, it is imperative for international regulatory frameworks to adapt accordingly.

The rise of cryptocurrencies and digital assets presents both opportunities and challenges for economies worldwide. Sitharaman argued that without a cohesive global strategy, countries may face significant risks including financial instability and regulatory arbitrage. She called for collaboration among nations to establish guidelines that ensure the safe and effective use of tokenized currencies while protecting consumers and investors.

The finance minister's remarks underscore the importance of proactive measures in the evolving landscape of digital finance, as stakeholders work towards harnessing the potential of technology while safeguarding economic integrity.