Home/ Budget / Centre to take balanced view on cryptocurrency: Sanjeev Sanyal

Principal Economic Adviser Sanjeev Sanyal on Monday said the Central Government will take a balanced view on the issue of regulation of cryptocurrencies as they have implications on India's financial stability.

At present, there are no particular regulations or any ban on use of cryptocurrency in India.

While speaking to reporters on the Economic Survey tabled in Parliament by Union Finance Minister Nirmala Sitharaman earlier in the day, Sanyal said the issue of cryptocurrency has not been covered in the Economic Survey 2021-22.

He added, "As you know, this is a matter of some debate, both inside the government, in the Ministry of Finance, and even in Parliament. So, this is something that is currently in discussion."

The Reserve Bank of India has also highlighted various issues, including financial stability impact of such virtual currencies.

"There are some financial stability issues. But there are also other arguments that are made in terms of innovation and so on....obviously a balanced view on this will be taken," Sanyal added.

The Centre had expressed its intention to bring a bill on cryptocurrency seeking to "create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India" in the last session of Parliament.

However, it could not be introduced as the Cabinet had not cleared the draft bill.

In November 2021, Prime Minister Narendra Modi held a meeting on cryptocurrencies with senior officials, and indications were that strong regulatory steps could be taken on the matter.

There have been a rising number of advertisements, featuring even film stars, promising easy and high returns on investments in cryptocurrencies in recent times, amid concerns over such currencies being allegedly used for luring investors with misleading claims.

The Parliamentary Standing Committee on Finance, chaired by BJP member Jayant Sinha, had also met the representatives of crypto exchanges, Blockchain and Crypto Assets Council (BACC), among others, and arrived at a conclusion that cryptocurrencies should not be banned in the country but should be regulated.

The central bank has repeatedly reiterated its strong views against cryptocurrencies, saying they pose serious threats to the macroeconomic and financial stability of the country and also doubted the number of investors trading them and their claimed market value.

RBI Governor Shaktikanta Das too had earlier this month reiterated his views against allowing cryptocurrencies, saying they are a serious threat to any financial system since they are unregulated by central banks.

With agency inputs

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Updated: 31 Jan 2022, 06:58 PM IST
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