New Delhi:
The government will take a balanced stance on the issue of the regulation of cryptocurrencies as they affect the country’s financial stability, chief economic adviser Sanjeev Sanyal said Monday.
Currently, there are no specific regulations or bans on the use of cryptocurrency in the country.
The issue of cryptocurrency has not been addressed in the 2021-22 economic survey, Mr Sanyal said in a media interaction about the survey filed in parliament by Finance Minister Nirmala Sitharaman earlier in the day.
“As you know, this is a topic of discussion both within the government, the Ministry of Finance and even in Parliament. So this is something that is currently under discussion,” he said.
The Reserve Bank of India (RBI) has also raised several issues, including the impact of such virtual currencies on financial stability.
“There are some issues with financial stability. But there are also other arguments that are being made in terms of innovation and so on…obviously there will be a balanced view on this,” he said.
The government had expressed its intention at the last session of Parliament to introduce a bill on cryptocurrency to “create a facilitating framework for the creation of the official digital currency to be issued by the Reserve Bank of India”.
However, it could not be introduced because the cabinet had not approved the draft bill.
In November, the prime minister held a meeting with senior officials on cryptocurrencies, and there were indications that strong regulatory action could be taken on the matter.
The Standing Parliamentary Committee on Finance, chaired by BJP member Jayant Sinha, also met representatives of crypto exchanges, Blockchain and Crypto Assets Council (BACC) among others, and concluded that cryptocurrencies are not in the country. should be banned, but should be regulated.
The RBI has repeatedly reiterated its outspoken stance against cryptocurrencies, saying they pose a serious threat to the country’s macroeconomic and financial stability and also questioned the number of investors it trades and their claimed market value.