The Reserve Bank of India (RBI) is still a critic, but it is now working on a digital currency. The government may submit a crypto law to the cabinet for consideration.
According to those acquainted with the situation, India is considering innovative and forward-thinking regulations on cryptocurrencies, a move that could be a break from its previous attempts to restrict the usage of virtual assets.
The government will continue to proactively engage with experts and other stakeholders on the evolving technology, according to the people, who asked not to be identified. Prime Minister Narendra Modi led a review meeting on the digital currency on Saturday, and it was decided that the government will continue to proactively engage with experts and other stakeholders on the evolving technology, the people said.
The prime minister’s office declined to comment through a spokeswoman.
There have been proposals in India to adopt stronger laws for virtual coin transactions, arguing that an unregulated environment could drive more domestic savings into the asset class, putting household savings at risk.
In recent years, India has had a tumultuous relationship with digital currencies. It effectively prohibited crypto transactions in 2018 after a run of frauds followed Prime Minister Modi’s abrupt move to destroy 80% of the country’s currencies, but the limitation was overturned by the Supreme Court in March 2020.
The Reserve Bank of India is still a sceptic, but it is now developing a digital currency. The government may submit a crypto law to the cabinet for consideration.
The people also agreed that attempts to deceive the country’s younger generation through over-promising and non-transparent advertising should be stopped. They also agreed that unregulated crypto markets should not be permitted to become conduits for money laundering and terror financing.
According to the sources, the gathering also discussed global examples and best practises. The importance of India seeking global collaborations and joint initiatives on the issue was emphasised, they said.
On Monday, India’s parliamentary panel on finance will meet with industry professionals and associations to discuss the obstacles and prospects in crypto money.