Private Cryptocurrency: What is the government’s opinion on cryptocurrencies? On this, the Minister of State for Finance informed the House today that the government is considering the possibilities of blockchain technology for the digital economy. He said that the Inter-Ministerial Panel regarding cryptocurrencies has noted that private cryptocurrencies should be banned. It will be the only digital currency in the country which the government will issue.
The Minister of State for Finance said that whatever the Inter-Ministerial Panel will suggest regarding cryptocurrencies, the government will decide accordingly. The government will move in this direction only after the panel’s suggestion. If any legal proposal is needed for this, then the government will also introduce the law related to it in the House.
Working on RBI’s digital currency
Recently, a report said that the Reserve Bank of India is working fast on bringing its digital currency. Very soon, its pilot testing is also going to start. Talking about the current status of digital currency in our country, RBI has not yet given legal recognition to private cryptocurrencies. Still, the Supreme Court has also removed the ban on its trading.
Central banks around the world are working.
According to a report published in the Economic Times, 86 per cent of the world’s central banks are currently working on the possibilities of Central Bank Digital Currency (CBDC). In contrast, 14 per cent of central banks have even started working on the pilot project.
Central bank considering many aspects
RBI Deputy Governor T Ravi Shankar said that we are moving in this direction in a phased manner. Very soon, pilot testing will also be done for its use related information. He said that the Reserve Bank is looking at whether the digital currency will be used in retail or will be used in wholesale. Technology will be centralised or distributed. Will RBI itself issue it, or will different banks give it.
Necessary changes will also have to be made in FEMA, IT Act, Coinage Act, RBI Act to prevent any wrong thing, including money laundering. He said that with the introduction of digital currency, the dependence on cash would reduce, and the expenditure on printing currency will be curbed.
How will RBI’s digital currency be?
Regarding how the CBDC of the Reserve Bank will be, Deputy Governor Shankar said that it would continue to get legal recognition from RBI. The form of this currency will be digital. Apart from this, there will be no change regarding its value. For example, a 10 rupee note and a 10 rupee digital currency will have equal value and can also be exchanged without interruption. Apart from RBI, the central banks of countries like China, England and Russia are also considering bringing such digital currency.