Speaking to CNBC TV 18 today, Nirmal Sitharaman clarified that the government is still formulating its opinion on cryptocurrency and will take a calibrated position. The remarks suggested that the Government may not impose a blanked ban on cryptocurrency.
“Many negotiations and discussions are happening with the Reserve bank because the Supreme court order had very clearly told that the government has to take a call on the matter. We are taking with Reserve Bank. I’m not sure before the Cabinet takes a call I’m not sure I want to give any clue on what is in it. Obviously the RBI will be taking a call on what kind of official currency, cryptocurrency will have to be planned and how it has to be regulated,» said Finance Minister Nirmala Sitharaman. The Supreme Court in March 2020 had quashed an RBI ban on payments related to cryptocurrency.
“But also we want to make sure there is a window available for all kinds of experiments which will have to take place in the crypto world. It is not as if we are going to look inwards and say we are not going to have any of this. There will be a very calibrated position. Mixed messages are coming across the world. I don’t think there is a complete go this way or that way in this matter. We will have to take a very calibrated position. The world is moving fast with technology. We cannot pretend we don’t want it. At the same time, we have to recognise with fintech we led the way. Many countries are looking at us for fintech based steps and the kind of things we have done in the payment duniya,» she said.
Sitharaman then summarised her remarks by stating that the government is open to experimentation. “I can only give you this clue that we are not closing our minds. We are certainly looking at ways in which experimentation can happen in the digital world and cryptocurrency,» she added