India Cryptocurrency: The Reserve Bank of India has made it clear that cryptocurrencies are not legal tender, but Union finance minister Nirmala Sitharaman is now saying the government needs to think through its options. “We have to be sure that a futuristic thing can’t be shut out,” she said at an event in New Delhi on Saturday.
Finance Minister Says India Might Make Its Own National Cryptocurrency. “It’s not a question of literacy or understanding – it’s also a question of to what extent this is a transparent currency; is it going to be a currency available for everyone? El Savador may be an exceptional place where they tried some experimentation. There are other countries that are talking about the central bank having a legitimate cryptocurrency. That could be a possibility,” Sitharaman said in an interview with Hindustan Times’ Editor-in-Chief Sukumar Ranganathan.
India Cryptocurrency, This is yet another sign of India’s willingness to embrace cryptocurrencies as it explores regulating them, which would mark a major departure from the Reserve Bank of India (RBI)’s current position that they don’t recognize cryptocurrencies as legal tender.
When asked if India should have its own cryptocurrency, Sitharaman said, “We have to evolve something suitable for our systems. India has the strength of technology; fintech gives us the command over the instrumentalities with which you can play; our economy is full of possibilities. So we have to be cautious, but we have to think it through.”
RBI governor Shaktikanta Das said last month that the central bank may launch a pilot of its digital currency by December this year. “RBI is working on a phased implementation strategy for the same. We will come out with regulations for public consideration in the next few months,” Das said.
The RBI has earlier issued multiple warnings against cryptocurrency investments, stating that they are risky and not backed by assets.
Last year, it even asked banks to stop offering services to companies dealing with cryptocurrencies — a move that was criticized for its lack of understanding of how blockchain technology works.