Govt. of India to offer a window for crypto adoption: FM Sitharaman

Govt. of India to offer a window for crypto adoption: FM Sitharaman

The Finance Minister of India- Nirmala Sitharaman has recently announced that there wont be a complete ban on cryptocurrencies, at least in its technical part. The FM was quoted stating that the government will not shut all options and will allow certain windows for people to experiment with bitcoins, cryptocurrencies, or blockchains.

She further mentioned that fintech highly depends on various fiscal experiments and the Government of India will keep room for digital assets. However, the cabinet note will enlist the type of formulations which is expected to be released soon.

The Finance Minister also stated that several fintech giants in India have showcased the adoption of blockchain technology. The government has received many presentations and aims to take it in a big way in International Financial Services Centers Authority or the Gift City in Gandhinagar.

Along similar lines, Nirmala Sitharaman said that the ministry is organizing a startup-meet on fintech and blockchain in Gift City once the parliament session is over.

In an interview, the MoS for Finance, Mr. Anurag Thakur mentioned that the inter-ministerial committee led by the ex-finance secretary- Subhash Chandra Garg had earlier suggested a draft Bill to ban the use of cryptocurrencies. The present government will decide on the recommendations made by the IMC.

Thakur added that the prevailing laws with respect to blockchain, cryptocurrency, and bitcoin are inadequate to deal with the subject, and hence the government of India had formed the IMC, which has submitted its report. The government has also met with a tech giant regarding the same matter.

In addition to the above, the committee of secretaries, headed by the Cabinet Secretary has also furnished its report, and a Bill is being made which will be presented in the Cabinet shortly.

In March 2020, the Supreme Court of India had knocked down the Reserve Bank of India’s regulations on banks to halt offering services to crypto trading platforms, causing uncertainty about the status of digital currencies in India.

Source Credit: https://www.business-standard.com/article/markets/india-will-not-shut-off-all-cryptocurrency-wants-blockchain-sitharaman-121031400754_1.html