India Renews Call For Ban On Cryptocurrency And Its “Destabilising Effect”
India’s central bank renewed the country’s call to ban cryptocurrencies. The South Asian state, the world’s second-largest market, is mulling a legislative action to take this prohibition into effect.
“[Reserve Bank of India] is of the view that cryptocurrencies should be prohibited,” said Indian Finance Minister Nirmala Sitharaman.
The government’s top finance officer also said that the central bank has expressed concerns about the “destabilising effect of cryptocurrencies on the monetary and fiscal stability of a country.” Sitharaman added that the Indian government is recommending “for framing of legislation on this sector.”
“Cryptocurrencies are by definition borderless and require international collaboration to prevent regulatory arbitrage. Therefore any legislation for regulation or for banning can be effective only after significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards,” she added.
In March 2021, the country first proposed a new law that would ban cryptocurrencies. The bill, called Cryptocurrency and Regulation of Official Digital Currency, was written to include the capacity of the central bank to launch its own blockchain.
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