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New Government Report From India Casts Positive Light on Crypto

A fresh report from the Indian government reveals a surprisingly positive stance on cryptocurrencies. Specifically, the report discusses the technical mechanisms underpinning crypto, and how India should regulate coins and tokens. 

Indian government report highlights positive aspects of crypto

This comes as there is mounting uncertainty over the status of cryptocurrencies in India. Indian authorities have recently been pushing for a potential ban of crypto in the world’s most populous democracy.

Although attempts have been made to actualize this ban, little has actually been done. Furthermore, some news outlets have already said that India’s efforts to “stifle cryptocurrencies could be doomed to fail”.

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Now, the Indian Ministry of Finance is further muddying the waters on India‘s official stance. The “Steering Committee on Fintech-Related Issues” has just submitted a final report to the Indian Finance Minister.

This committee consists of high-ranking members of the Department of Economic Affairs. Furthermore, the report is highlighting the benefits of cryptocurrencies. As such, this would seem to directly contradict the notion to ban crypto in India. The report states:

“Use of digital tokens resolves the issue of multiple currencies, improves liquidity and capital compliance costs, allows for micro-payments and expedites the payment process, which further eliminates liquidity risks.”

India: “Crypto is revolutionizing the global landscape”

In addition to this, the report also goes on to recognize the substantial effect cryptocurrencies are having around the world. “The mechanisms surrounding cryptocurrencies, particularly the blockchain and initial coin offerings (ICOs), are revolutionizing the global fintech landscape,” the report states. 

As such, it is noting the substantial benefits cryptocurrencies hold. Although some might see this as a foregone conclusion, it is still notable seeing India’s unclear stance to crypto. 

The Steering Committee which made the report was ordered to “take stock of developments in the fintech space globally and in India, study the regulatory climate in various geographies, identify application areas and use cases in governance and financial services, [and] suggest institutional regulatory upgrades enabling fintech innovations.”

These findings could then possibly influence the Indian government’s future decisions. With a looming crypto ban, advising against this could potentially be a big deal. At the very least, it is promising to see this committee come to the conclusion that cryptocurrencies are advantageous.

The Indian Supreme Court is currently slated to hear the case relating to India’s crypto policies in January of next year. However, the Indian government could reportedly introduce a crypto bill as soon as during the next parliamentary session.