- The Governor of the Reserve Bank of India leads the MPC.
- MPC’s Ashima Goyal believes that digital currencies should be referred to as “tokens.”
- India’s attitude on the cryptocurrency business is yet unknown.
According to Goyal, the fundamental explanation why India would not recognize any cryptocurrency is the risk of it being utilized for illegal purposes.
A participant of India’s Monetary Policy Committee (MPC) has offered Indian crypto traders some relief from concerns that the cryptocurrency industry may be outright banned in the nation. In a new conversation with the Press Trust of India, Ashima Goyal allegedly stated that enacting a blanket prohibition on symmetric encryption activity would be tough.
According to Goyal, the fundamental reason why India would not recognize any cryptocurrency as official cash is the risk of it being utilized for illegal purposes. Cryptocurrencies are unregulated by any financial organization in the world, allowing for large cross-border payments to be made rapidly and invisibly.
In her interview, Goyal denied calling crypto coins “currency,” claiming that they are now neither appropriate nor appropriate as methods of payment in India.
According to the Press Trust of India, the analyst thinks that these fully decentralized commodities must be referred to as “crypto tokens,” and that these tokens should be controlled by the Indian government.
In November, India announced a crypto-focused agenda to be considered during the Parliament’s Winter Quarter.
A “crypto law” that apparently called for the suspension of all personal currencies in the country was set to be prolonged for ratification.
The Indian government was considering a “wide restriction on any operations by any individual on mining, creating, holding, selling, (or) dealing” in digital currencies as a “medium of exchange, store of value, and a unit of account,” according to the bill’s summary.
Rules violations were specified as a non-bailable crime.
The law, on the other hand, did not make it to Parliament and was instead sent to Prime Minister Narendra Modi’s Cabinet for approval.
Since then, nothing has been heard regarding the paper.
“Only substantial transactions from individuals who are wary may be authorised,” Goyal is claimed to have remarked, expanding on how cryptocurrencies would function in India.
The Reserve Bank of India (RBI) asked that all crypto operations be prohibited in India earlier this week. The RBI’s main worries include extreme price volatility and the risk of being misappropriated.
The confusion around cryptocurrency regulation in India happened at a time when the industry is rapidly expanding in the world’s second most populous country.
According to several surveys conducted by research businesses like as Watcher Guru and BrokerChoose, India has the greatest amount of crypto investors in the globe. It’s estimated that there are roughly 100 million of them.
However, the year 2021 proved to be a watershed moment for the crypto industry.
The year before, the global cryptocurrency market valuation surpassed $3 trillion (approximately Rs. 2,15,66,720 crore) for the first time, setting a new all-time high.
El Salvador legalised Bitcoin as a form of legal money in September of last year.
China, on the other hand, issued a blanket prohibition on all cryptocurrency activity in the very same month, making it a criminal violation.
For the time being, India’s position on cryptocurrency is unknown.