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The Indian cryptocurrency ecosystem has seen considerable development, but a lack of regulatory clarification has been a major impediment. While the Indian government has been wary of cryptocurrencies, it has recently stated that it will hold a “open mind” and seek to promote the establishment of a national digital fiat.
Anurag Thakur, Minister of State, Finance Ministry cleared the air about the alleged ban on cryptos like Bitcoin. While talking about the crypto bill that is yet to make its way to the parliament, Thakur noted that the government was considering the issue pertaining to digital assets as one of the main agendas for the government. The current government has been emphasizing the need for digitizing the country and thus, a crypto ban might go against that stance.
The MoS drew attention to a digital INR being developed by the government and the Reserve Bank of India [RBI]. The minister also emphasised the government’s efforts to create room for innovation; however, the competitive existence of the crypto industry has been concerning.
Thakur also discussed how to secure investors at periods of high uncertainty in the digital asset industry in the interview. The minister emphasised Bitcoin’s continually fluctuating price and stressed that they were on “the side of technology” and were approaching cryptocurrency with a “open mind.”
Recently, the Inter-Ministerial Committee [IMC], which was formed to understand crypto and recommend regulations, suggested a ban on all private cryptos. This caused an uproar from the crypto community in the country and at the time, Thakur had stated that the government is yet to decide on the same.
While holding a preventive stance against the use of cryptos in financing illegitimate activities, Thakur noted that a legislative proposal will be introduced in the Parliament after due process.