Bitcoin and other cryptocurrencies have found it hard to get going in India since their initiation. The Indian administration, already in muddy waters over numerous cases of money laundering and illegitimate project funding, has taken a tough stand on dealing with crypto assets.
As per a recent report, the country was heading towards drafting a crypto regulatory framework, which was said to be in its final stage, but new findings indicate that the officials tasked with the matter are now exercising caution while analysing its impact on the Indian Rupee.
Unlike many of its peer nations, India continues to remain backward in its approach and integration of any type of cryptocurrency into the country’s economic scheme of things.
As reported by Altcoinera on Jan.28, the Inter-Ministerial Committee (IMC), tasked with drafting the crypto regulatory framework, is headed by Secretary of the Department of Economic Affairs, Mr. Subhash Chandra.
The officials and a collective group of crypto loyalists comprising of the nation’s crypto community, met recently and one anonymous entity was quoted saying:
“If bitcoin and other digital currencies are going to be allowed to be used for payments then whether it will end up destabilizing the fiat currency is a major concern for them (the Garg panel).”
The anonymous person further stated:
“The overall impact on the financial ecosystem that it is likely to have is still unclear and it has been a challenge to convince them on this particular point.”
The Indian crypto fraternity’s patience is wearing thin, with further delays in a draft on crypto regulations looking inevitable.
The Indian administration fears that crypto transactions will have an impact on the national currency and could even dominate the financial landscape in the future.
However, individuals like Indian crypto exchange Koinex founder, Rahul Raj, states that there would be a considerable stretch of time before such a scenario arises.
“At this point, it may be a bit premature to worry about this as right now even globally only a handful of payments are made using virtual currencies and that will be the case till blockchain reaches the scale that say Mastercard or Visa have.”
Although the Indian government is not particularly keen on the idea of a state-backed cryptocurrency, the country’s central bank, the Reserve Bank of India, and Garg’s panel have shown some inclination of creating their own set of cryptocurrencies.
All in all, India looks a long way away from reaching the crypto frontier, let alone making its entry into the crypto space, and for me, the only progression the country can make at the moment is to the clear the smog of confusion inhibiting the cryptocurrency market growth within its physical boundaries.