A renowned economist who is a member of India’s Monetary Policy Committee says that a total cryptocurrency ban is difficult to implement and “would only increase illegal activities and participation in the darknet.” She believes that crypto assets should be regulated.
Monetary Policy Committee Member: A Complete Crypto Ban is Difficult To Implement
Ashima Goyal, a member of India’s Monetary Policy Committee, talked about cryptocurrency in an interview with PTI on Sunday. Monetary Policy Committee, (MPC), decides the interest rate that is required for inflation to be achieved.
Goyal has served on several government committees, including the Prime Minister’s Economic Advisory Council and the Reserve Bank of India (RBI) technical advisory committee for monetary policy. Goyal is a prolific author in international and open-economy macroeconomics and governance.
Responding to questions about cryptocurrency, she suggested that they be called “crypto tokens” instead. They aren’t as acceptable as or as appropriate as currencies. They should also be banned as legal tender and regulated under the tokens label.
Goyal added, “Only large transactions, from investors who are aware of the risks, may be permitted,” elaborating:
Implementing a complete ban would be difficult and could lead to increased illegal activity and darknet participation.
At its latest meeting, the RBI exhorted the government not to allow crypto. It stated that it will not accept a partial ban.
The RBI also recently said that cryptocurrencies are “prone to fraud and to extreme price volatility,” stressing that they “pose immediate risks to customer protection and anti-money laundering (AML) / combating the financing of terrorism (CFT).”
There is currently no specific law in India that applies to cryptocurrency, but India’s government is working towards cryptocurrency legislation. A cryptocurrency bill was presented for discussion in parliament’s winter session, but it was not approved. According to reports, the government has begun work on the bill.
Is it possible for the Indian government to ban all cryptocurrency? Please comment below.
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