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Pay Attention: Crucial Information provided by the government about cryptocurrency

According to the Minister of State for Finance, the government is exploring the prospects of blockchain technology for the digital economy. According to him, the Inter-Ministerial Panel on Cryptocurrencies states unequivocally the prohibition of private cryptocurrencies. It will be the country’s sole digital money that the government issues.

The MSoF’s Statement

The Minister of State for Finance stated that the government would follow any Inter-Ministerial Panel’s recommendations on cryptocurrency. Only after the panel’s recommendation will the government take action in this direction. To cover legal requirements, the administration will present the relevant legislation in the House.

RBI Developing Digital Currency

According to a recent report, the Reserve Bank of India is moving quickly to develop its digital currency. Its pilot testing will begin very soon as well. Regarding the current state of digital currency in our nation, the RBI has yet to provide private cryptocurrencies legal recognition, although the Supreme Court has lifted the trading prohibition.

T Ravi Shankar, RBI Deputy Governor, stated, “We are proceeding in this route in a gradual way”. Pilot testing for its use-related information will conclude very shortly. According to him, the Reserve Bank examines whether they will utilise digital money in retail or wholesale. Additionally, technology will be dispersed or centralised. To steer clear of frauds, necessary amendments will have to be made to the FEMA, IT Act, Coinage Act, and RBI Act. He claims that the adoption of digital currency will lessen reliance on cash while also reducing the cost of producing money.

How will CBDC function?

Regarding how the Reserve Bank’s CBDC would function, Deputy Governor Shankar stated that it would continue to get legal legitimacy from the RBI. This money will be digital. Aside from that, nothing will change in terms of its worth. A ten rupee note and ten-rupee digital money, for example, will have the same value and may undergo exchange without delay. Apart from the RBI, central banks in China, England, and Russia consider introducing such a digital currency.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.