The leadership of the Indian Ministry of Finance supported the position of the central bank, which took up arms against digital assets.
The Reserve Bank of India (RBI) has recommended that the government impose a ban on private cryptocurrencies. India’s finance minister, Nirmala Sitharaman, agreed that tough digital asset regulations are needed, citing the “destabilizing impact of cryptocurrencies on the country’s monetary and fiscal stability.”
Since May, the Government of India has been working on a document defining the procedure for the circulation of digital assets in the country. However, despite repeated statements about its “practically ready”, even a draft document outlining the state’s position on crypto assets has not yet been published. That being said, despite repeated requests from the community, the Government of India refuses to make public its intentions regarding crypto. For this reason, uncertainty remains in the Indian crypto industry not only on the issue of regulation, but also regarding the classification of whether they are financial assets or goods.
Despite RBI’s tough stance on cryptocurrencies, the bank is not uncooperative with all stakeholders, believing that “global cooperation” is necessary for any effective regulation or ban.
At the same time, the regulator is hard at work on its own digital currency, which it hopes to introduce this year. According to RBI Deputy Governor T. Rabi Sankar, a central bank digital currency can completely eliminate all reasons for the existence of private cryptocurrencies in the country’s financial system.
Source: Bits
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