Finance Minister Nirmala Sitharaman has made it clear that there will not be a complete ban on cryptocurrencies or at least the technological part of it.
“For our part, we are very clear that we do not close all the options. We will allow certain windows for people to experiment on blockchain, bitcoins or cryptocurrencies, ”Sitharaman said at an India Today conclave.
He said that financial technology depends on such experiments and will have that window available. “We are not closing it,” he said.
But it is the Cabinet note that will detail the type of formulation, he said, adding that the note will be ready soon. “It is about to be completed and then it will be taken to the Cabinet. The Supreme Court had commented on the cryptocurrency. We are very clear that the Reserve Bank of India (RBI) will accept a call about an official cryptocurrency, ”he said.
On blockchain technology, he said that it is a large area and that India has a leadership advantage in it. “Many fintech companies have come a long way in this regard. We have several presentations. A lot of work is being done at the state level. And we want to take it big at IFSC or Gift City in Gandhinagar, ”said the FM.
She said the ministry plans to have an essentially fintech kick-off meeting in Gift City. “Once Parliament is done, I will probably spend more time executing it and planning that. In fintech and blockchain, there is a lot of work being done in India and we will certainly encourage it, ”said the FM.
Earlier, MoS for finance Anurag Thakur had said in Parliament that there are different definitions for cryptocurrencies or virtual currencies around the world. The inter-ministerial committee (IMC), headed by former finance secretary Subhash Chandra Garg, had first suggested a bill to ban cryptocurrencies. “The government will make a decision on the IMC’s recommendations,” Sitharaman had said in a written response to a question in parliament.
Existing laws are inadequate to deal with the issue, Thakur said. The government formed the IMC and delivered its report, he said, adding that there was also an empowered tech group meeting, which took place earlier.
Thakur said that the committee of secretaries, chaired by the cabinet secretary, has also presented its report and that the bill is being finalized. It will be sent to the Cabinet soon.
The SC, in March 2020, had reversed the RBI’s instructions on banks to stop providing services to crypto trading platforms, creating uncertainty about the state of virtual currencies in India.
The new legislation will clear the government’s position on cryptocurrencies.
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