Government will review stand regarding use of cryptocurrency and other technologies: Minister of State for Finance Anurag Thakur

New Delhi: Union Minister of State for Finance Anurag Thakur informed that the government is willing to evaluate the use of newer technologies including cryptocurrency. A few months ago, the government had appointed a high-level Inter-Ministerial Committee, presided over by the Economic Affairs Secretary. The committee has submitted its report to the government and it is believed that the government will soon decide on the use of cryptocurrency and other newer technologies. Against this background, the statement of Minister of State for Finance becomes significant.

Prime Minister Modi has adopted a resolute stand for increasing the use of technology in administration. The government has consistently welcomed research and new technologies. Blockchain is a new and advanced technology and cryptocurrency is a type of virtual currency. Minister of State for Finance expressed his opinion that the time has come to evaluate these concepts with an open mind. On Friday, Union Minister for Finance, Nirmala Sitharaman, clarified that the government is thinking seriously about cryptocurrency. A few weeks ago, the Reserve Bank predicted a possible new policy for digital currency. Whereas, last week, Shashikant Das, the Reserve Bank Governor, had expressed serious concerns regarding cryptocurrency. Shashikant Das had said that he had conveyed his concerns and stand to the union government. Therefore, there are indications that the government is seriously evaluating cryptocurrency. But there has been no official announcement on this matter.

There are contrasting opinions regarding the cryptocurrency Bitcoins. Sensation has been created globally as each bitcoin’s value has risen to $50,000 and analysts from the finance sector are making contrasting claims. Recently, Elon Musk, Chief of the international industrial group, Tesla, made a big investment in Bitcoins. This once again triggered the discussions on the subject. But the economists are asking, ‘How much can you trust this cryptocurrency without any basis or recognition?’ Whereas some are claiming that this is the currency of the future.

India banned cryptocurrency in 2018. But in 2020, the Supreme Court issued a judgement ordering reversal of this ban.