Finance
By: Shree1news, 06 MAR 2021
In what can be a huge relief to cryptocurrency stakeholders in the nation, Finance Minister Nirmala Sitharaman has hinted the Centre may not go for a blanket ban on digital currencies and that it’s still formulating its opinion on the matter. She stated the Centre was open to experimentation with new technologies and isn’t closing its minds for them.
As per the finance minister, the call on cryptocurrencies can be taken after deliberations with the Reserve Bank of India (RBI) and cabinet members are over. “A lot of negotiations and discussions are happening around the cryptocurrency with the Reserve Bank of India. RBI will probably be taking a call on what kind of unofficial cryptocurrency will have to be deliberate and the way it needs to be regulated. However we need to ensure that there’s a window accessible for all types of experiments which will have to take place in the crypto world,” she stated at CNBC-TV18’s IBLA townhall.
The finance minister has stated the Centre’s position on cryptocurrencies will probably be a “calibrated one”. The FM clearly stated the Centre is not averse to new technology, which is changing rapidly. “There will be a very calibrated position taken. A lot of mixed messages are coming from across the world. The world is moving fast with technology, we cannot pretend that we don’t want it,” she stated.
The FM’s remarks on cryptocurrency are in distinction with that of RBI Governor Shaktikanta Das, who had just lately stated the RBI had reservations relating to digital currencies. He stated the apex financial institution was engaged on its digital forex. The RBI doesn’t wish to be left behind within the technological revolution, and the advantages of blockchain expertise should be capitalised on, he stated, including “we have sure considerations relating to cryptocurrencies.”
This stance is in lines with the central government, which has revealed it will bring a new bill on cryptocurrencies (The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021). Notably, an inter-ministerial committee (IMC) on cryptocurrency has suggested a ban on private cryptocurrencies, like Bitcoin, in India. The same committee also pitched for the introduction of an RBI-regulated digital currency.
The RBI had virtually banned cryptocurrency trading in 2018. However the Supreme Court in 2019 asked the government to come up with cryptocurrency policies. In 2020, the SC down the RBI curbs on the cryptocurrency trade.
Source:A-N
