On July 18, 2022, Nirmala Sitharaman, Finance minister of India, said in parliament that the government seeks “global collaboration” for any effective regulations or bans. “In view of the concerns expressed by the RBI on the destabilising effect of cryptocurrencies on the monetary and fiscal stability of a country, the RBI has recommended for framing of legislation on this sector. The RBI is of the view that cryptocurrencies should be prohibited,” the finance minister said in a written response to a question in the Lok Sabha.
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The minister added that the provided borderless nature of cryptocurrencies requires global collaboration to prevent any sort of arbitrage. “Therefore any legislation for regulation or for banning can be effective only after significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards,” she said.
Her comments came in the midst of the belief that the government can introduce legalisation that could handle the crypto sector in the monsoon session of parliament which started today. but no bill till now has been recorded for the introduction.
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The government will not make its stance public on crypto as it refused to do so. Instead, Sitharaman and Prime Minister Narendra Modi in recent months have called for joint global action to tackle the problems created by the use of crypto.
While the general public is waiting for the legalisation of crypto, the Reserve Bank of India has continued to work on its own digital currency which may get introduced this year. As per RBI Deputy Governor T Rabi Sankar, the Central Bank Digital Currencies (CBDC) could “kill” the reasons for the existence of private cryptocurrencies.
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