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The Indian government and regulators have been attempting to establish a clear stance on the use and availability of cryptocurrencies in the region. Despite the fact that the country’s Finance Minister, Nirmala Sitharaman, recently told the group that the government would take “calibrated” steps on crypto, the Reserve Bank of India has remained opposed to it.
According to sources, the Reserve Bank has voiced “major concerns” over cryptocurrencies being exchanged in the market and has informed the government of this. Today, RBI Governor Shaktikanta Das made headlines when he said that the government and the RBI are “committed to financial stability,” adding that there are no disagreements between the central bank and the Finance Ministry on the subject. “We can now await the Centre’s final judgement on the matter,” he said.
The country’s crypto-enthusiasts have been befuddled by the topic of crypto. Many anticipated a certain degree of transparency towards Bitcoin after the government declared its plan to fully avoid crypto due to its speculative existence, among other factors, in light of the current bull market.
However, according to Das, there are “reasons to expect” that the government shares the RBI’s “big reservations” regarding cryptocurrency.
“Central bank digital currency is one thing. The cryptocurrencies which are traded in the market are something else. Both RBI and government are committed to financial stability. We have flagged certain concerns around these cryptocurrencies which are being traded in the market. We have flagged certain major concerns to the government.”
Following the announcement of the intention to ban, it was also made clear that the government would consider a central bank digital currency. Das noted that it is currently evaluating the financial stability ramifications of implementing a CBDC. He mentioned,
“As the underlying technology is still developing, we are exploring ways for a clear, safe, and legally certain settlement finality, which is most crucial for a secure and efficient payment system.”
Meanwhile, sources indicate that Indian firms would be required to reveal their cryptocurrency holdings, as well as their revenues and losses. They continued,
Now every Indian Company has to disclose its #Crypto holdings and profit and loss occured out of it.
The Govt. has made this disclosure mandatory by amending Schedule III of Companies Act, 2013. Read Section 129 to understand Schedule III.https://t.co/gnbapVWhb3
— Crypto Kanoon (@cryptokanoon) March 25, 2021