Indian Crypto Strategy and International Cooperation
India demands international crypto regulation
Concrete plans for a digital rupee
Not only Indian strategy, but also international cooperation is the subject of an essay by Finance Minister Ajay Seth. He told a news conference in Cointelegraph that India could not stand alone on this issue. We need an “approximate legal framework that all countries can agree on together.” The consultation paper aims to strengthen cooperation with the IMF and the World Bank and demonstrate India’s commitment to global crypto regulation. It must then be presented to the Government of India and Asia’s third largest economy prepared to meet the challenges of cyber currencies in the national and international environment.
Until now, the Government of India has been considered very restricted in terms of digital assets. At the end of last year, the ban on cryptocurrencies seemed to be imminent but this half-ban was lifted earlier this year. In February, the Indian government took a big step towards legalizing cryptocurrencies by taxing profits from the transfer of digital assets. Indian Finance Minister Nirmala Sitharaman has announced that she will legalize digital assets and expand the digital rupee.
In recent months, as BeInCrypto reports, there has been an increase in suspicious statements about cryptocurrencies from the Central Bank of India (Reserve Bank of India RBI). It fears the dollarization of the economy and the loss of monetary sovereignty. Since cryptocurrencies can be replaced by the rupee in domestic and international transactions, it will “replace a portion of the monetary system. [und] It weakens the RBI’s ability to control the flow of money in the system, “said an official at the Central Bank of India.
However, in its May 28 annual report, according to Cointelegraph, the RBI is planning a concrete, multi-stage plan for the launch of the digital rupee announced in February. There will be a pre-launch feasibility study and testing phase to ensure that the proposed cyber device supports financial stability. Financial system Do not endanger the Indian government.
Global control strategy instead of ban
In an IMF panel discussion, Rabbi Shankar, Deputy Governor of the Central Bank of India, reiterated his opposition to cryptocurrencies: technology (blockchain) is merely a tool, and not capable of generating isolated currencies in real-use cases. Therefore, in the future, “the central bank will destroy the case for the final use of digital currencies and cryptocurrencies”.
June 2 at 7:00 AM ET // At the border: India’s digital payment system and beyond will explore the latest developments in digital payments, focusing on lessons from India and the central bank’s role for digital currencies in the future. https://t.co/ZSj7i15fBG pic.twitter.com/X6cVyHewEs
– IMF (IMFNews) May 31, 2022
When asked about the ban on cryptocurrencies in India, Finance Minister Ajay Seth said in a press conference at his ministry that one should be aware that a national ban cannot be enforced without an international consensus anyway. At a recent World Economic Forum in Davos, Prime Minister Narendra Modi described cryptocurrencies as a global challenge and called on the international community to coordinate regulation. He warned of the challenges and dangers of Bitcoin and the company, and called on the “global family” to adopt a similar attitude and work together.
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