Indian Government to Bring Out Cryptocurrency Bill

JAIPUR, India - Aug. 21, 2021 - PRLog -- In an interview with the Economic Times, Finance Minister Nirmala Sitharam has said that cryptocurrencies have huge potential. The Union government is adopting methodologies in collaboration with RBI to rectify the sophisticated regulations of these digital currencies.

The Indian government is not against cryptocurrencies, they're looking into the tactics to maximize the potential of crypto exchange. The work has nearly been rounded up and the Cryptocurrency bill will come into power till 2021 end.

Indian government on legislation of Cryptocurrencies

The Finance ministry has already had its eye on the potential of cryptocurrencies for a long time. The Central Government formed an inter-ministerial panel to investigate the application and in-depth consequences of digital currencies.

The report of the inter-ministerial panel, managed by the secretary (Economic Affairs) has already recommended that private currencies, despite virtual currencies published by the state, will not be allowed in India.

The inter-ministerial panel also stated that currently, the cryptocurrencies are far away from any governmental regulations therefore they lie amidst the grey area for Indian investors. The government is willing to empower a few exceptions to leverage the caliber behind cryptocurrencies.

Collaboration of Reserve Bank of India on cryptocurrency

The governor of RBI: Shaktikanta clarified that the mechanism of cryptocurrencies makes no difference between the Finance Ministry and the Central Bank. He also stated that the government is in agreement with the concerns raised by RBI about the trade of cryptocurrencies in the Indian market.

In March 2020, the Supreme court waved off the 2018 advisory notice of RBI that prohibits banks and financial institutions to authorize any services related to the trade of cryptocurrencies even if they're related to these digital assets.

Meanwhile, in May 2021, Deputy Governor RBI said that the measures are being adopted to roll out a Central Bank Digital Currency (CBDC) through the cryptocurrency bill.

Future of Cryptocurrencies in India

Cryptocurrencies are virtual currencies that use encryption techniques to authorize the transfer of funds and regulation of blockchain, their operation doesn't involve any authorization from government bodies and any other financial institutions.

Cryptocurrencies have received a positive response in India and it is also clear that they're penetrating the market with an exponential growth.Indian investors are showing enormous interest in digital currencies.

An investment of $6 billion has already been recorded and an estimate states about 1.5 crore Indians have made these investments. Furthermore, numerous IT enterprises and startups have started providing services in blockchain and cryptocurrency development.

Website - https://www.brsoftech.com/cryptocurrency-development.html