• India’s Finance Minister Nirmala Sitharaman is in favor of cryptocurrency and believes it will dominate India’s future.
• RBI Governor Shaktikanta Das has stated that he does not think cryptocurrencies have a place in India and prefers to ban them.
• In 2018, traditional financial institutions were not allowed to do business with crypto firms, however, this did not mean that cryptocurrencies were banned.
Nirmala Sitharaman on Crypto in India
India’s Finance Minister Nirmala Sitharaman recently visited Washington and expressed her support for the development of a common framework for all countries to deal with the matter of cryptocurrencies. She believes that they will take up most of the chat time during this year’s upcoming G20 presidency event in India.
RBI Governor Shaktikanta Das‘ View on Cryptocurrency
Shaktikanta Das – the governor of the Reserve Bank of India (RBI) – has said that he does not think crypto assets have any place in India and would prefer to do away with them. He stated that RBI’s position is very clear: cryptocurrency should be banned. However, he supports the technology behind blockchain and its development.
Crypto Firms Prohibited from Working with Traditional Financial Institutions
Back in 2018, it was announced that traditional financial institutions would no longer be allowed to do business or provide services to crypto-based enterprises due to regulatory concerns over investors‘ funds.
Turning Things Around About Crypto in India
Recently, free trade agreements have been signed between India and other countries such as Australia, UAE, Mauritius and ASEAN which allows for quota-free and tariff-free transactions between nations. This could be beneficial for cryptocurrency as it may allow more people access to digital currencies without being hindered by barriers such as high fees or taxes imposed by governments or financial institutions.
It is clear that while there are still some doubts among regulators regarding cryptocurrency, there are also signs indicating a more favorable outlook towards digital currencies from government representatives such as Nirmala Sitharaman who believe they will dominate India’s future economy.