30 October meeting of the Council for financial stability and development (FSDC) with the participation of Finance Minister Arun Jaitly discussed the “crypto challenges”. This is stated in a press release from the government Information office.
During the meeting the Board was presented with materials about the work of the Committee under the chairmanship of Secretary economic Affairs, who put forward the “appropriate legal framework for the prohibition of the use in India of private cryptocurrency”.
Although the legal status of these “framework” is unclear, it is likely that in the event of their entry into force, the use of cryptocurrencies by citizens of the country to exchange and trade will be prohibited. However, the standards most likely will not prevent the establishment of a previously proposed digital currency from the Central Bank (CBDC).
In August the Reserve Bank of India (RBI) announced a possible introduction of the CBDC, which will be supported by the chart. This will reduce the annual cost of minting physical money.
Despite the negative attitude of “personal cryptocurrencies”, the Committee advocated “encouraging” the use of technology of the distributed registry.
This year the national Institute of transforming India (NITI Aayog) has said it is working on a possible scheme of application of the blockchain in education, health and agriculture. Maybe soon will start testing.
We will remind, in April, RBI has banned Indian banks to cater to cryptocurrency company and the stock exchange. The latter were forced to abandon Fiat and limited to only trading crypto/crypto, and once the largest platform Zebpay last month it stopped working.
Currently, the country’s Supreme court receives petitions from exchanges, demanding to lift the ban RBI. On 26 October, the court asked the government to clarify its position on this issue.
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