In a press release that has been published recently by the Indian government, it announced that it received a report on cryptocurrency regulation submitted by an inter-ministerial committee which was established by the Indian government in 2017.
The government of India wants to make a final decision about cryptocurrencies and before doing so it will review this report along with all the concerns expressed by different departments of the government.
The committee that wrote the report has a positive stance toward the Blockchain technology; however, it has a negative stance toward cryptocurrencies, and wants them to be banned completely.
This committee is concerned about the risks and the price volatilities of cryptocurrencies, and wants to ban them and set a fine for anybody who is involved in any kind of activity related to cryptocurrencies in India.
The government of India formed this inter-ministerial committee in 2017 so that they would study the issues related to cryptocurrencies and finally propose a specific action for the Indian government to take in this regard. The report is now in the hands of the government and will be examined prior to the final decision making.
In this report, the committee showed that it has a positive stance toward the distributed ledger technology (DLT) and its many applications in various financial services in India. It believes that the distributed ledger technology can be used by banks to process financial services faster and with much more security and also for detecting fraudulent activities.
This committee recognized that while technological innovations like cryptocurrencies can improve the efficiency of financial systems, the cryptocurrencies do not really have the benefits of the fiat money.
For this reason, the government of India has been warning people about the threats of cryptocurrencies. The central bank of India also prohibits any entity from facilitating crypto transactions.
Altogether, this committee wants the government of India to ban all private cryptocurrencies, like Bitcoin, Ethereum, Dash, etc., and only wants the cryptocurrencies issued by the government to be considered legal.
A copy of this report and the draft they have proposed to ban all cryptocurrencies completely titled “Banning of cryptocurrency & Regulation of Official Digital Currency Bill, 2019” has been published in the official website of the department of Economic Affairs of India.