BTC Wires: A country, that is stringently holding on to its cryptocurrency ban, could it be possibly heading towards a future that is crypto friendly and accommodating of the digital currency? According to recent reports, this seems to be the case with India.
An intergovernmental committee has been set up which is looking into applications of Crypto in India’s current mainstream infrastructure. This committee, called the Inter-Ministerial Committee (IMC), was established way back in 2017 by the Ministry of Finance and includes representation from the likes of India’s taxation authority, India’s Department of Economic Affairs (DoEA), State Bank of India and many other important ministries.
This committee discussed the usability of cryptocurrency in the Indian public sector, especially in the transportation sector. It is being headed by DEA secretary Subhash Chandra Garg, who said in a statement:
“The committee is studying the possibility of using cryptocurrencies or the crypto technology (distributed ledger technology) for financial transactions and also what kind of regulations are needed for that.”
The idea is to look into whether crypto can be a more efficient alternative for smart cards in metros and loyalty programmes such as air miles, where you cannot redeem your points in form of fiat currency, just services. Crypto here is being looked at as a digital representation of money that is tokenized, rather than a direct substitute for it.
The committee was charged with the task of formulating a regulatory framework for cryptocurrency, taking into account its status both domestically and in the international forum. Questions of legality and viability had to be considered in this significant discussion which could majorly influence, the administration’s stance on crypto.
The Reserve Bank of India stands firm on its April 2018 circular which bars all financial institutions in the country from doling out any services which makes use of cryptocurrencies. Garg said that while
“the currency is totally banned, the committee is discussing its other usage and how it can be mainstreamed in India,”