Union Minister Anurag Thakur on Saturday said the government is open to evaluate and explore new technologies, including cryptocurrencies, for improving governance. Prime Minister Narendra Modi himself is a strong advocate of embracing technology in various aspects of governance, the Minister of State for Finance said while addressing an event organised by Entrepreneurs’ Organisation – EO Punjab.
“Let me say that we welcome innovation and new technology…blockchain is a new emerging technology. Cryptocurrency is a form of virtual currency. I firmly believe that we must always evaluate, explore and encourage new ideas with an open mind,” he said. A High-Level Inter-Ministerial Committee (IMC) was constituted under the chairmanship of economic affairs secretary on digital currencies and it has submitted its report.
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The government would take a decision on the recommendations of the IMC and the legislative proposal, if any, would be introduced in Parliament following the due process, he said while inviting suggestions and views on this issue. Cryptocurrencies are digital or virtual currencies in which encryption techniques are used to regulate the generation of their units and verify the transfer of funds, operating independently of a central bank.
Finance Minister Nirmala Sitharaman on Friday said the government is still formulating its opinion on cryptocurrencies and will take a calibrated position. Reserve Bank of India Governor Shaktikanta Das had last week said the apex bank has certain “major concerns” over the impact cryptocurrencies may have on the financial stability in the economy and has conveyed the same to the government.
The RBI had virtually banned cryptocurrency trading in 2018 and had directed all entities regulated by the central bank to cease dealing in virtual currencies. The Supreme Court had also asked the Centre in 2019 to frame policies for crypto, and in 2020, struck down the curbs imposed by the RBI. The Reserve Bank had through various public notices on December 24, 2013, February 1, 2017 and December 5, 2017, cautioned users, holders and traders of virtual currencies, including bitcoins, regarding various risks associated in dealing with such virtual currencies.