Trump made many big announcements regarding cryptocurrency in America, why is India hesitant?
US President Donald Trump, during a meeting with global entrepreneurs last week, reiterated that he will make America the leader in the crypto world. In cryptocurrency, the US has also talked about exploring the possibilities of creating its own foreign exchange reserve. This has also excited entrepreneurs doing cryptocurrency business in India. But RBI’s view on crypto has not changed at all.
India’s central bank still believes that the Finance Ministry is also not going to take any hasty steps to give legal recognition to cryptocurrency. Any step in this regard will be taken only after a detailed assessment of the report of the working group constituted by the RBI. The report of this working group is likely to come soon.
What could be the government’s stance on cryptocurrency?
A senior official aware of the government’s policies on cryptocurrency said that the concerns of the Government of India or RBI regarding this currency remain the same. There has been no change in the basis on which we are opposing the implementation of cryptocurrency in India. We are of the opinion that cryptocurrency is not a currency of any kind, because there is no one to issue it and there is no one to take responsibility for it. Therefore, it can neither be considered a currency nor a financial asset.
‘Secondly, there is no research report yet that proves that cryptocurrency can run the entire economy. Thirdly, can it be used as a private currency? Our view will change only when someone proves that they are completely wrong.’ A senior official aware of the government’s policies
Actually, this stance of RBI is quite old. Former RBI Governor Dr. Shaktikanta Das had described cryptocurrency as dangerous for India on several occasions. Due to the strong opposition of RBI, the central government also had to change its views on cryptocurrency. Earlier, an inter-ministerial committee constituted under the chairmanship of former Finance Secretary Subhash Chandra Garg had suggested in the year 2019 to make a law to ban virtual currencies like cryptocurrency.
‘The government will follow RBI’s suggestion and not Trump’s policies’
Dainik Jagran has talked to some government representatives about the promotion of cryptocurrency by the US government. Everyone is of the opinion that the government will move forward on RBI’s suggestion and not President Trump’s policies. Now it remains to be seen if the RBI committee suggests a middle path regarding virtual currency or suggests some other path. It also remains to be seen how a big economy like America finds a way to bring bitcoin or other virtual currency into circulation in its country.
