Indian Crypto Industry Bullish on Finance Minister Ensuring a ‘Very Calibrated’ Approach to Regulation
“We are not closing our minds,” Nirmala Sitharaman said, "The world is moving fast on technology; we can't pretend that we don't want it.”
Indian Finance Minister Nirmala Sitharaman gave a dose of clarity and hope to the crypto community of the country as she talked about taking a “very calibrated” position on cryptocurrencies.
“It is great new sign of positive and inclusive outlook towards crypto,” said Sumit Gupta, co-founder, and CEO of crypto exchange CoinDCX.
“These thoughts give a strong reason to believe in the future of crypto in India, and I am hyper bullish on crypto's role in India's growth story.”
During last week’s IBLA live session on CNBC TV-18, Sitharaman acknowledged the global developments in crypto space saying, the government wants to make sure there’s “a window available for all types of experiments in the crypto world.”
“A lot of negotiations and discussions are happening around cryptocurrency with the Reserve Bank of India,” she said. The central bank “will be taking a call on what kind of unofficial cryptocurrency will have to be planned and how it has to be regulated.”
Her comments are taken as a positive sign that the government would be taking a rational approach towards crypto regulations instead of anything harsh or extreme.
“The world is moving fast on technology; we can't pretend that we don't want it,” she said, further pointing out how the country has also made “huge revolutions” in the payment sector and that “the world looks at us for fintech innovation.”
“So, we are not closing our minds; we are certainly looking at ways in which experimentations can happen in the digital world, cryptocurrency, and so on.”
Earlier this year, there have been reports that India may introduce a blanket ban on crypto. However, as we reported, it wasn’t the first time such speculation reared its ugly head, not to mention it has been just a proposed bill that hasn’t been presented yet.
Over the weekend, Union minister Anugar Thakur also said in an interview that the government is open to evaluate and explore new technologies, including crypto. Thakur said,
“Let me say that we welcome innovation and new technology…blockchain is a new emerging technology. Cryptocurrency is a form of virtual currency. I firmly believe that we must always evaluate, explore and encourage new ideas with an open mind.”
A High-Level Inter-Ministerial Committee (IMC) has been constituted under the Chairmanship of Economic Affairs Secretary on digital currencies, which has submitted its report.
The week prior to that, Reserve Bank of India Governor Shaktikanta Das said that the central bank has certain “major concerns” over crypto’s impact on the financial stability of the economy, which has been conveyed to the government as well.
Back in 2018, the RBI banned crypto trading and directed all banks and financial institutions to stop dealing with crypto providers. But last year, the Supreme Court of India struck off this banking ban against crypto, calling the move “unconstitutional.”
Much like other countries, India is also looking into a central bank digital currency (CBDC); as Das said, the RBI is “very much in the game” to launch a digital Rupee.