India could shift its focus on cryptocurrencies once again. Finance Minister Nirmala Sitharaman believes in the possibility of move from a total ban to experimentation within the market.
India has been in the spotlight regarding cryptocurrency regulations for over the last year. The country appears to be unsure, though, of what stance to take towards the growing popularity of blockchain technology. Digital assets linger under a cloud of confusion as regulations remain undecided.
The most recent announcement by the Indian Parliament was to proceed toward a ban on private cryptocurrencies. Moreover, it considered forbidding all cryptocurrencies in the future. The bill was under review as the government sought to clarify its stance towards digital assets. The country also announced it would be considering implementing its own Central Bank Digital Currency (CBDC).
However, recent news states that Finance Minister Nirmala Sitharaman has spoken out on the ban. Sitharaman mentioned that the Indian government is holding talks with the Reserve Bank of India to consider an agreed position on cryptocurrencies.
Fintech Leader Needs to Focus on Cryptocurrency Adoption
The Finance Minister firmly believes that India cannot simply look the other way as technology continues to grow across the globe. As he sees it, India has remained a key player in the Fintech sector. Therefore, banning cryptocurrency technology would directly impact India’s ability to remain ahead of the world.
Sitharaman stated, “We want to make sure there is a window available for all kinds of experiments which will have to take place in the crypto world. It is not as if we are going to look inwards and say we are not going to have any of this. There will be a very calibrated position.”
India has been in discussions about banning cryptocurrencies for nearly a year now. However, it appears the recent surge in cryptocurrency adoption across the world has the government reconsidering the Reserve Banks’ possible ban.
Crypto Advocates Encouraged by Latest News
Cryptocurrency advocates in India have backed Sitharaman’s recent statements. Co-founder and CEO of Indian cryptocurrency exchange CoinDCX Sumit Gupta spoke out about the recent developments. Gupta believes the latest announcement is an encouraging sign for the company. At the moment, CoinDCX has over 100 staff with some of the best talents in the industry.
“We have always reiterated the need for regulation, taxation and transparency for our sector. As an Indian fintech firm, we are also building global level products. We believe crypto as an asset has huge potential and if properly administered can help India earn sizable revenue,” he said.
The Indian government will be looking to come to an agreement with the Reserve Bank. Ideally, this entails offering regulations allowing cryptocurrency experimentation and possibly a looser stance on the industry, rather than outright banning digital assets. However, with nothing confirmed yet, Indian crypto fans will have their eyes peeled on upcoming developments.