Centre hospitable evaluate, explore cryptocurrencies, says Anurag Thakur

A High-Level Inter-Ministerial Committee (IMC) was constituted under the chairmanship of economic affairs secretary on digital currencies and it's submitted its report.

Union Minister Anurag Thakur on Saturday said the govt is hospitable evaluate and explore new technologies, including cryptocurrencies, for improving governance. Prime Minister Narendra Modi himself may be a strong advocate of embracing technology in various aspects of governance, the Minister of State for Finance said while addressing an occasion organised by Entrepreneurs' Organisation – EO Punjab.

"Let me say that we welcome innovation and new technology…blockchain may be a new emerging technology. Cryptocurrency may be a sort of virtual currency. I firmly believe that we should evaluate, explore and encourage new ideas with an open mind," he said. A High-Level Inter-Ministerial Committee (IMC) was constituted under the chairmanship of economic affairs secretary on digital currencies and it's submitted its report.

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The government would take a choice on the recommendations of the IMC and therefore the legislative proposal, if any, would be introduced in Parliament following the due process of law , he said while inviting suggestions and views on this issue. Cryptocurrencies are digital or virtual currencies during which encryption techniques are wont to regulate the generation of their units and verify the transfer of funds, operating independently of a financial institution.

Finance Minister Nirmala Sitharaman on Friday said the govt remains formulating its opinion on cryptocurrencies and can take a calibrated position. Federal Reserve Bank of India Governor Shaktikanta Das had last week said the apex bank has certain "major concerns" over the impact cryptocurrencies may wear the financial stability within the economy and has conveyed an equivalent to the govt .

The RBI had virtually banned cryptocurrency trading in 2018 and had directed all entities regulated by the financial institution to cease dealing in virtual currencies. The Supreme Court had also asked the Centre in 2019 to border policies for crypto, and in 2020, struck down the curbs imposed by the RBI. The Federal Reserve Bank had through various public notices on December 24, 2013, February 1, 2017 and December 5, 2017, cautioned users, holders and traders of virtual currencies, including bitcoins, regarding various risks associated in handling such virtual currencies.