Union minister Anurag thakur has recently stated that the government is ready to revise its stand on the contentious topic of cryptocurrency. He optimistically maintained that that government is open to evaluate and explore new technologies, including cryptocurrencies for improving governance in the near future.
He stated, “let me say that we welcome new innovation and new technology….blockchain is a new emerging technology. Cryptocurrency is a form of virtual currency. I firmly believe that we must always evaluate, explore and encourage new ideas with an open mind”.
Anurag Thakur is a member of the Lower House of Parliament in India from Hamirpur in Himachal Pradesh, and also serves as a Minister of State for Finance and Corporate Affairs, thus his positive response to cryptocurrency holds weight and brings relief for the interested investors.
IMC was constituted under the Chairmanship of Economic Affairs Secretary on digital currencies. The government is reported to consider the recommendations of the IMC and the legislative proposal.
This comes after the cryptocurrency was banned virtually by the RBI in 2018 and the government had taken an antagonistic stance against the contentious virtual currency. The investors recently were reeling under speculations that the government will enforce ban on all types of trading in cryptocurrency which can put them on the wrong side of the law.
The investors have recently shown immense interest in the virtual currency after its endorsement by Tesla’s CEO Elon Musk, who stated that his company will be accepting cryptocurrency as a form payment in the near future. Additionally, Tesla recently invested $1.5 billion dollars in cryptocurrency, setting the currency’s value to rise by 2000%.
BTrust, a pioneering scheme by Jack Dorsey also aims to build a trust for cryptocurrency and its use. But the RBI governor begs to differ on the topic. Last week, Shaktikanta Das said that the apex bank has certain “major concerns” over the impact cryptocurrencies may have on the financial stability in the economy and has conveyed the same to the government. This comes as the virtual currency is highly volatile given its anonymous nature which makes it difficult for the government to bring it under its tax regime.
RBI had reportedly put a ban on the trading of crypto in 2018 which was challenged by the supreme court who asked the center in 2019 to frame laws for crypto and struck down the curbs imposed by the RBI.
The finance minister Nirmala Sitharaman recently stated that the government is formulating its opinion on the cryptocurrencies and will hence take a calibrated position. Thus what holds for the future of virtual currency in India is yet uncertain and the investors will have to continue their game of speculation until the government issues its next order.