Indian Finance Minister Reveals Plan To Ban ‘Private Cryptocurrencies’

Wilfred Michael 

Wilfred Michael

News reporter

31 October 2018,
21:52
Indian Finance Minister Reveals Plan To Ban ‘Private Cryptocurrencies’

The government of India will likely continue its negative stance on cryptocurrencies according to a press release on Tuesday.

The release was made available to the government's Press Information Bureau following the 19th meeting of the Financial Stability and Development Council (FSDC).

Finance Minister, Arun Jaitley while speaking at the meeting discussed the challenges/issues being faced by crypto assets and cryptocurrencies in India.

The top official, then pointed out that the council received an update from a high-level committee that it had set up in order to “devise an appropriate legal framework to ban the use of private cryptocurrencies in India”.

This committee is being headed by the Secretary of Economic Affairs, even though nothing was given away by Jaitley regarding the status of the framework.

Private Cryptocurrencies?

One thing that looks certain is that ‘private cryptocurrencies’ as used in this context refer to Bitcoin and other cryptocurrencies which the government of India has already spoken against.

Earlier this year, the country banned local banks from dealing with crypto exchanges and most recently arrested the owner of a Bitcoin ATM.

Any official ban will likely stop citizens from trading cryptocurrencies and will be a big blow for the crypto community.

 

DLT Encouraged By Indian Government

In a positive light, the Finance minister revealed that a plan was in place to ‘encourage’ the growth of digital ledger technology in the country.

The underlying technology behind Bitcoin could still find practical application across several sectors of the nation's economy and for this reason, a spot has been reserved for it in the 2018/19 Budget.

In fact, a Central Bank Backed Digital Currency (CBDC) is reportedly being planned in India. The Reserve of Bank of India believes it will help the country cut down on its $90 million budget for printing fiat.