Money9 Edit | Cryptocurrency muddle needs a larger consultation

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The brouhaha surrounding the legitimacy of cryptocurrency seems to be getting entangled into new knots as the RBI is still sticking to its stand even though Finance Minister Nirmala Sitharaman has ruled out an immediate ban.

This year has been quite topsy-turvy for domestic cryptocurrency investors.

Current uncertainty does not bode well for investors and with divergent views coming out in public, it is natural for them to get cold feet.

The need of the hour is to engage in consultations with stakeholders and not rush into a legislation resolution immediately.

Sitharaman noted that blockchain technology is a big area and India has a big advantage in that domain.

“We will allow certain windows for people to do experiments on blockchain, bitcoins or cryptocurrency. We are not going to shut it off,” she asserted the stance of the government.

She also said a Cabinet note is in the works although RBI will take a call on official cryptocurrency.

Instead of going for a conservative approach, the government and RBI should ensure that the fintech sector and citizens are able to harness the power of this new technology and create a regulatory setup which also safeguards the interests of investors.

The RBI has more than once raised its concerns and is of the view that the government’s efforts to restrict black money flow would suffer a blow if cryptocurrencies are given the green signal.

With the central bank standing its ground, there will be need for more dialogues. However, the faster the impasse is resolved, the better for investors as many citizens have invested a considerable amount of money as they were drawn by the rate of returns and seamless process of transactions, aided by the spurt in the number of platforms.