India’s mixed stance on crypto

india crypto regulations

India’s mixed stance on crypto

Minister of Information and technology in India, Rajeev Chandrasekhar, claimed that cryptocurrency and related services would not be faced with any issues till the related laws and regulations are followed. His statement opposed the Central Bank’s views on crypto as it has previously advised people to stay away from crypto.

Chandrashekhar was a speaker at an event in Bengaluru, where he said that there is “nothing today that outlaws crypto as long as you follow the legal process.”  

Recently, the Reserve Bank of India has also claimed a strong position against digital assets and called it that they do not have any underlying value. Moreover, India’s central bank has warned the government and financial institutions against using cryptocurrency and related assets. It has highlighted digital assets’ volatility and related risks and scams.

Shaktikanta Das, governor of India’s central bank, only a week earlier, called that  cryptocurrencies don’t have any intrinsic value and their  “value is nothing but make-believe.” He opined that cryptos are not worth it, not even a tulip, suggesting a renowned Dutch tulip mania blow-up, which happened a century ago.

He said, “Every asset, every financial product has to have some underlying (value), but in the case of crypto, there is no underlying… not even a tulip…and the increase in the market price of cryptos, is based on make-believe.”

India, at present, holds the G20 presidency; the country also aims to take the opportunity to coordinate with the crypto regulations happening globally.  According to the reports, Ajay Seth, India’s federal economic affairs secretary, said last year Dec that to inform a policy consensus, the G20 nations would examine the potential and implications of digital assets for the economy, financial sector, and monetary policy.

On the contrary, the central bank of India has always believed in Central Bank Digital Currencies, and has also claimed them to be the “future of money.” Last year, in November, India launched its pilot program for CBDCs in collaboration with nine financial institutions.

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