Trade cryptos? In official statement, Modi’s government does not intend to boost India’s cryptocurrency industry

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The government does not intend to stimulate the cryptocurrency industry in India. Representative image

Ahead of the much-anticipated introduction of India’s Cryptocurrency Regulation Bill, the central government told Parliament on Monday, December 6, 2021 that it did not intend to boost the cryptocurrency industry by India. This statement was made by Union Minister of State at the Ministry of Finance Pankaj Chaudhary in a written response to a question.

“The government has no intention of stimulating the cryptocurrency industry in India,” Chaudhary said.

Responding to another question on the reliability of cryptocurrency and whether the government can regulate the market, Chaudhary said, “Currently, cryptocurrencies are not regulated in India. The government does not collect data on the cryptocurrency industry. A Cryptocurrency and Official Digital Currency Regulation Bill has been included to be introduced in the Lok Sabha Bulletin-Part II as part of government business expected to be discussed at the Seventh Session of the 10th. seventh Lok Sabha, 2021. “

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The government has repeatedly told Parliament that it does not collect data on crypto exchanges operating in India. On Monday, he also said that the government is not collecting data on the details and number of people currently using / trading / investing in Bitcoins with the money invested.

The government is expected to present the cryptocurrency bill to parliament after obtaining Cabinet approval.

Meanwhile, RBI also plans to introduce a central bank digital currency (CBDC).

“The introduction of the CBDC has the potential to provide significant benefits such as reduced reliance on cash, higher seigniorage due to lower transaction costs, reduced settlement risk. The introduction of the CBDC could also lead to a more robust, efficient, reliable, regulated and legal payment option. There are also associated risks that need to be carefully weighed against the potential benefits, ”Chaudhary said in response to another question from Lok Sabha.

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“As the CBDC is backed by a country’s central bank, aside from other benefits, it won’t have the volatility that is normally associated with private cryptocurrencies,” he added.

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