TL;DR Breakdown
- India may rethink its rigid outlook on crypto.
- The country is also looking at improving on its CBDC.
India may be having a rethink on its stand on cryptocurrencies. This is according to a new report that suggests regulation rather than an outright ban on digital assets is in the offing
The report comes as an aftermath after the active discussions on placing a ban on crypto, with the country looking at adopting a new strategy. Speculation has it that the nation had formed a new panel of experts to implement more precise regulations on cryptocurrency trading.
India’s new strategy
The new initiative aims to address recommendations made by the former finance secretary Subhash Garg in 2019. He advised the government to ban users from interacting with digital assets, which the committee set to address.
The Economic Times reports on Wednesday citing sources close to the committee. They note that a new panel of experts may be formed to study how regulating crypto in the country would play out rather than placing a ban.
Over the years, the country has not taken a particular stance on crypto. The country’s apex bank, the Reserve Bank of India, placed a ban on all firms that work with it from providing support for crypto. In 2020, the country’s Supreme Court overturned the ban, which was a win for the Indian crypto community back then.
Locals in the country continued to show strong support and interest in digital assets, and authorities began mulling a blanket ban. In March, there were rumors that India had plans to criminalize transacting with cryptocurrencies.
CBDC among options on table
The new committee is looking at utilizing blockchain for technological enhancement, and afterward, proposing how cryptos can be regulated as digital assets rather than currencies.
The additional assignment for the committee is working with the Reserve Bank to develop and launch the proposed digital rupees. According to the Economic Times, the finance ministry is on the side of the crypto industry after trading volumes skyrocketed and increased activity in the crypto space by Indians.
