The Indian government has clarified its position on cryptocurrency and the country’s digital currency in replies from the Ministry of Finance in Rajya Sabha, the upper house of the Indian Parliament. The Indian crypto industry views this clarification as positive news and that the government is unlikely to ban cryptocurrencies, including bitcoin, completely.
Indian government answers questions about cryptocurrency and digital rupee
Rajya Sabha, the upper house of the Indian Parliament, published a list of questions and written answers on Feb. 2 on the topic “Introducing India’s Own Cryptocurrency.”
Member of Parliament Sri Sanjay Raut asked the Finance Minister whether the Indian government knows that many corporate companies have been using cryptocurrency for international transactions in the past year and whether the government is considering the possibility of introducing India’s own cryptocurrency.
The questions were answered by Finance Minister Anurag Singh Thakur. He replied “No, sir” to the first question.
When asked about the digital rupee, he replied, “No sir. In the Budget Speech of the year 2018-19, it was announced that the government does not consider cryptocurrencies as legal tender or coins and will take all measures to eliminate the use of these crypto assets in financing illegal activities or as part of the payment system . The government will proactively explore the use of blockchain technology to usher in the digital economy. “
The questions and answers published by Rajya Sabha followed the list of the cryptocurrency bill is introduced during the budget session in Lok Sabha, the lower house of the Indian Parliament.
According to Lok Sabha’s booklet, the crypto law aims to create a regulatory framework for the issuance of the digital rupee by the Reserve Bank of India (RBI) and to ban ‘private cryptocurrencies’. The RBI also recently disclosed that it is exploring the need to issue a central bank digital currency (CBDC).
Proponents say outright ban is unlikely, definition of ‘private digital currency’
Commenting on the Secretary of the Treasury’s replies, CEO of the local crypto exchange Wazirx, Nischal Shetty, said Shri Anurag Thakur’s replies “show that the government is focused on curbing illegal activity and payment systems.” He explained:
This makes more confusion clear that there will not be a full ban on crypto.
Shetty said earlier, “I don’t believe there will be a complete ban on crypto in India. Most importantly, no government anywhere in the world will destroy Rs. More than 7,500 crore in assets of 7 million people. “
The CEO of Unocoin crypto exchange, Sathvik Vishwanath, said, “While this does not indicate the future of the crypto industry in India, it is proof that it is moving in a direction favorable to crypto.”
The CEO of crypto platform Cashaa, Kumar Gaurav, told news.Bitcoin.com:
It is too early to comment on what exactly the term ‘private cryptocurrency’ refers to according to the concept. Further, knowing that cryptocurrency is a global and decentralized system, no government can ban it.
“That requires that kind of technology and control, which technically does not rest with anyone. They can certainly ban the legitimate use of crypto, which will only make it difficult for an ordinary person who doesn’t understand to get involved, ”he added.
“What we understand, however, is that the Indian government is trying to combat scams conducted in the name of bitcoin, as 90 percent of these scams don’t even work on a real cryptocurrency,” he added. “We are confident that the government will come up with regulations and policies that will give control over the scams and the innovation in the industry, including the crypto such as bitcoin, cashaa, ethereum that are built on the public chain, grow and thrive. . “
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