Indian government struggles with the use of crypto as a fiat currency
Today, the Indian government took up the issue of crypto-assets. The government's rhetoric emphasizes the goal of eliminating the use of crypto-assets to finance illegal activities or as part of the payment system.
In a letter responding to the Rajya Sabha, minister of state for finance, Pankaj Chaudhary said that the government is studying the blockchain system to boost India's digital economy. The letter noted that cryptocurrency is not considered legal tender in the country. The government is actively working to crack down on crypto racketeering, money laundering and data leakage.
Indian government struggles with the use of crypto as a fiat currency
"The government does not consider cryptocurrency to be legal tender or coin and will take all measures to eliminate the use of these crypto assets to finance illegal activities or as part of the payment system," said Pankaj Chaudhary.
A recent report by the Inter-Ministerial High Level Committee (IMC), chaired by the secretary (economic affairs), to examine issues related to virtual currencies and suggest specific actions to be taken on the issue, suggested taking against private cryptocurrencies. The IMC recommended that all private cryptocurrencies be banned in the country, with the exception of any cryptocurrency issued by the state.
In addition, Pankaj Chaudhary confirmed that the government will take action with reference to the IMC report.
If the government reaches a consensus on the legislative proposal, it will be presented in the upcoming sessions of parliament after due process.
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