Author: Jagdish Kumar, India
Even though India has banned crypto trading, it is considering allowing crypto currencies for financial transaction, according to DNA newspaper.
The paper said that quoting a sources in the finance ministry that as the committee under the chairmanship of Department of Economic Affairs (DEA) secretary is studying the possibility of using various crypto assets, including crypto currency is working on the draft that will be presented to the parliament soon.
The official also said that the committee is examining if crypto tokens can be used to replace smart cards such as metro cards in the public sector to start with. Similarly, in the private sector, it can be used in loyalty programmes such as air miles where its use is limited to buying the next ticket and can’t be converted into money.
It is learnt that the committee is working on a set of regulations, and specific actions, including a roadmap for allowing cryptocurrencies in future.
The crypto tokens that the government is calling may not be at par unlike virtual or cryptocurrency and cannot be replaced for fiat money. The government tokens will are based on Blockchain application.
Speaking on this, DEA secretary Subhash Chandra Garg who is heading the committee said that the new technology has a lot of promise. The committee is studying the possibility of using cryptocurrencies or the crypto technology (distributed ledger technology) for financial transactions and also what kind of regulations are needed for that.
However, Garg underlined that though the committee is discussing its other usage and how it can be mainstreamed in India, it cannot be used in any manner including in payment systems.
On 6 April 2018 Reserve Bank of India (RBI) had directed all the banks to stop dealing with individuals and businesses dealing in virtual currencies from 5 July 2018, which is now enforced across the country.
Garg said that the cryptocurrencies are all ponzi schemes and the government don’t believe in such online currencies.
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