The Finance Minister said that PM Modi himself is a strong advocate of adopting technology in various aspects of governance.
Union Minister Anurag Thakur said on Saturday that the government is open to evaluating and exploring new technologies, including cryptocurrencies, to improve governance.
Prime Minister Narendra Modi himself is a strong supporter of the adoption of technology in various aspects of governance, the Minister of State for Finance said while addressing an event organized by the entrepreneurs' organization – EO Punjab.
“I say that we welcome innovation and new technology … Blockchain is a new emerging technology. Cryptocurrency is a form of virtual currency. I believe that we should always evaluate, explore new ideas with an open mind. And encourage, ”he said.
A High-Level Inter-Ministerial Committee (IMC) was constituted under the chairmanship of the Secretary of economic Affairs on Digital Currencies and has submitted its report.
The government will decide on the IMC's recommendations and the legislative proposal, if any, to be tabled in Parliament after the process, he said, inviting suggestions and views on the issue.
Cryptocurrencies are digital or virtual currencies in which encryption techniques are used to regulate the generation of their units and to verify the transfer of funds, which operate independently of the central bank.
Finance Minister Nirmala Sitharaman said on Friday that the government was still formulating its opinion on cryptocurrencies and would take a calibrated position.
Reserve Bank of India Governor Shaktikanta Das said last week that the impact on financial stability in the Reserve Bank's economy has some “major concerns” over cryptocurrency and has also made the government aware of this.
The RBI virtually banned cryptocurrency trading in 2018 and directed all entities regulated by the central bank to stop working in virtual currencies. The Supreme Court had also asked the Center to formulate policies for cryptocurrency in 2019 and attacked the sanctions imposed by the RBI in 2020.
The Reserve Bank has, through various public notices on December 24, 2013, February 1, 2017 and December 5, 2017, related to various risks associated with such virtual currencies to users, holders and traders of virtual currencies, including bitcoin of virtual currencies did.