The Organiser, a journal affiliated with the Rashtriya Swayamsewak Sangh (RSS) has called for cryptocurrency regulations in the country as the digital currency sees phenomenal growth across the world.
A recent opinion piece in the journal said that while the basic purpose of currency was to facilitate transactions, cryptocurrencies were seen more as ‘an asset class’ having storage value instead of a medium of exchange. “This is because of the regulatory gaps at present. Recent developments show that the time has come to fill up this gap as soon as possible,” said the article by Bharatiya Janata Party spokesperson Gopal Krishna Agarwal.
He cited media reports to claim that the cryptocurrency market in India was currently valued at $1.4 billion with investments from nearly 80 lakh people. He said the regulation will help neutralise the nervousness in the market.
“The whole ecosystem is operating in an unregulated regime, neither being illegal with markets ripe with speculations that the government is ready to ban them at any point of time in the near future. The investors and the intermediaries operate in an uncertain environment and live-in anxiety, leading to hyper speculation,” the article added.
In a recent interview, finance minister Nirmala Sitharaman had said that they cannot and should not shut new technologies but in the case of cryptocurrencies, there were many unresolved issues. She added that the government was in consultations and took the Reserve Bank of India’s view in formulating policies for the cryptocurrency market operation in India.
There also have been reports about RBI’s plan to introduce its own digital currency.
Many central banks including the RBI in the past, had raised concerns over the fear of illegal money infusion due to the centralization of operation.
However, Agarwal in his opinion piece also backed block technology used in cryptocurrency and said that its right integration with digital currencies could help revolutionize the business ecosystem in India.“There is no doubt that these currencies are beneficial, but the question is the choice—private currencies or central bank-promoted digital currencies.”
The article said that the expected Cryptocurrencies and Regulation of Official Digital Currencies Bill, 2021 could help strike the right balance between the adoption of breakthrough technology and transparency and financial stability.
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