India plans progressive steps towards digital currency regulation

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The Indian government has shown an unstable relationship with digital currency over the last few years. In 2018, the Reserve Bank of India (RBI) placed a ban on digital currency transactions that the Supreme Court ruled on March 4, 2020—stating that it was unconstitutional.

Unfortunately, 2021 did not bring good news to the digital currency market, as it faced yet another setback after the government banned all non-government backed or private digital currencies with only some government regulated technologies as exceptions.

Despite all the criticisms by the Reserve Bank of India on digital currency, it was reported last September that the country has started developing its own digital currency. This leads to speculations that the government is taking progressive steps towards the future of digital currency in India, which is big news for the advancement of digital assets like Bitcoin.

India’s plans for digital currency

Prime Minister Narendra Modi has hinted at the plans of the Indian government to take “progressive and “forward-looking” steps on the future of digital currency in the country, following an open rebuke on how to stop misleading digital currency advertisements.

This information was released by sources affiliated with Asia News International (ANI), a leading broadcast agency in India.

“It was strongly felt that attempts to mislead the youth through over promising & non-transparent advertising be stopped.” Nonetheless, “there was consensus also that the steps taken in the field of cryptocurrency & related issues by the Govt will be progressive & forward-looking. Govt will continue to pro-actively engage with the experts and other stakeholders.” ANI posted on Twitter.

It was also discussed that unregulated crypto markets cannot be let to become avenues for money laundering & terror financing. Govt is cognizant of the fact that this is an evolving technology hence the government will keep a close watch and take proactive steps: Govt sources

— ANI (@ANI) November 13, 2021

In addition to this, the government agrees that digital currency is evolving as a technology, and said it would play its part through close monitoring and positive steps.

The reports were revealed alongside the recently released attack on the ruling party, Bhartiya Janta, by India’s main opposition party, the Indian National Congress (INC), regarding an alleged digital currency scam in Karnataka.

The ruling party is facing accusations of hiding the digital currency scam, and they have been asked to produce the names of people who facilitated the illegal activity.

“This is a case of intrigue, whitewash, concealment and deception smack of a deep-rooted conspiracy. It is India’s biggest-ever bitcoin scam cover-up under the Karnataka BJP government…” INC spokesperson Randeep Singh Surjewala stated during a press conference.

“Instead of conducting a fair investigation, the BJP Government of Karnataka appears to be preoccupied with a cover-up,” he added.

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