At therecent 19thmeeting of the FSDC [Financial Stability and Development Council] onTuesday, the country’s finance minister ‘Arun Jaitley’specified‘the associatedproblemsand challenges’ of crypto assets and cryptocurrencies, amongotherthings,in line with an official press releaseissued by the govt’s PressinformationBureau.
In the discussion, the council was briefed on the “deliberations” by a high-level committee chaired by the secretary of economic affairsto returnup withsomeappropriate legal framework to ban useof personalcryptocurrencies within the country.
While thestatusof any framework for the ban ispresentlyunclear, if it comes intoeffectit mightlikely rule outthe overall generaluse of cryptocurrencies by the country’scitizensfor exchange andtrading. However, theformulationwould seemto letthe country unclear to launch acentral bankdigital currency [CBDC], as hasantecedentlybeenproposed.
Earlier in August, RBI [Reserve Bank Of India] the country’s major central banking authority, indicatedit absolutely wasresearching apotentialintroduction of a rupee-backed CBDCto chopits annual bill of nearly $90 Mln for printing physicalmoney.
Despite the negative slant on cryptocurrencies at themeeting, itconjointlysaw discussion ofan idea to “encourage”the employmentof distributed ledger technology [DLT].
Already this year, the NationalinstitutionforTransforming India,widelyreferred to as‘NITI Aayog,’ stated that it wastryingto develop a proof-of-concept to explore blockchain in key sectorstogether witheducation, health and agriculture.
The meeting comesas thecryptoecosystemin Indiais already in crisis followinganApril’sorder by theRBI that prevented domestic banks from providing services to crypto exchanges within the country.
Since then exchangesareseekingwaysto keeptheir businesses from failing,together withlaunching crypto-to-cryptotrading. However, Zebpay, oncethe majorcryptocurrency exchange bytrading volumewithin thecountry,shuttereditstradingservices last month.
Furthermore, last week, a crypto ATMinstalledby the Unocoin exchange wasconfiscatedby police and its co-founderwas arrested.
Legal petitions from several exchanges to overturn the RBI’s existing ban ispresentlybeingheardat the country’s supreme court.