Cryptocurrency holders in India have been wary of investing more of their earnings into the growing technology, ever since the news broke out that the government might issue a ban on their trade. However, in what can be a huge relief for cryptocurrency enthusiasts in the country, Finance Minister Nirmala Sitharaman has hinted that the government’s response to the technology will be “calibrated,” adding that the center is open to experimentation with new technologies.
“A lot of negotiations and discussions are happening around the cryptocurrency with the Reserve Bank of India. RBI will be taking a call on what kind of unofficial cryptocurrency will have to be planned and how it has to be regulated. However we want to make sure that there is a window available for all kinds of experiments which will have to take place in the crypto world,” she said at CNBC-TV18’s IBLA townhall.
“There will be a very calibrated position taken. A lot of mixed messages are coming from across the world. The world is moving fast with technology, we cannot pretend that we don’t want it,” she added.
The world of cryptocurrency has seen an exponential growth in the last few months, with Bitcoin breaching its previous all time high last year and reaching the $50,000 milestone later. This has led to the industry slowly warming up to the technology, as Tesla invested $1.5bn in the crypto.
However, Indian investors have shown reserve when it comes to partaking in the cryptocurrency frenzy, as the government is still formulating its stance on the tech. After a bill was introduced, seeking to issue a blanket ban on all cryptocurrencies and possibly using the blockchain technology to create a digital rupee, crypto owners have been left wondering about the future of their investments.
The Finance Minister’s remark may result in more Indians putting their money behind cryptocurrencies. However, her statement goes against the opinion of RBI Governor Shaktikanta Das, who had recently said the RBI had reservations regarding digital currencies.
Nonetheless, this news comes as a ray of hope for crypto holders in the country. This sentiment is echoed by Mr. Sumit Gupta, Founder and CEO of CoinDCX, who said, “The FM’s stance on ‘considering a calibrated approach’ is an encouraging sign. We are a 100 plus staff company with some of the best talents emerging out of some of the premier institutes of India like IIT. We have the bandwidth, the data and resources to provide any assistance to the FM’s endeavour in this sector.”
Moreover, he added,”Mrs Sitaraman’s statement is sign of government’s resolve to digitise India and making us Atmanirbhar. We are a home grown entity our products are made in India, catering to the appetite of Indian masses. We care for them and the law of the land. Hence, we diligently follow KYC norms and adhere to regulatory practices. We have always reiterated the need for regulation, taxation and transparency for our sector. As Indian fin-tech 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 sizeable revenue.