Finance Minister Nirmala Sitharaman says not all windows shut for cryptocurrencies

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New Delhi: Union Finance Minister Nirmala Sitharaman on Sunday clarified that there will not be a complete ban on cryptocurrencies or at least the technology part of it.

Speaking at the India Today Conclave, the finance minister said that, “…while the RBI may take a call on official cryptocurrency but from our side, we are very clear that we are not shutting off all options.”

A Cabinet note is being prepared and we will allow a certain amount of window for people to experiment on blockchain and bitcoin, she added.

Finance minister’s comments resonate with the industry view. The industry also believes that banning crypto is not the solution. Most of the developed economies are working towards regulating it so that innovation around this new technology brings maximum fruits to their economies. The digital asset ecosystem is going to complement the economy and not displace it if properly regulated.

It may be recalled that, The Cryptocurrency and Regulation of Official Digital currency Bill, 2021, suggests that the Government of India is planning to introduce a ban on trading and investment in private cryptocurrencies and allow the Reserve Bank of India (RBI) to develop and run its own digital currency, referred to as Central Bank Digital Currency (CBDC).

It triggered many conversations within media and the crypto market at large about the misconception of how the government defines cryptocurrencies (as private or public). Globally, top cryptocurrencies like Bitcoin, Ethereum, and other blockchain-based decentralised assets’ are not viewed as private in nature, but rather more as Decentralized public assets, traded on public exchanges.