The Indian right-wing, paramilitary volunteer organization Rashtriya Swayamsevak Sangh (RSS) affiliated journal, The Organiser, in its latest article has called for crypto regulation in the country.
RSS made the recent demand amid the growing popularity and adoption of cryptocurrency around the world.
While explaining the need for regulating cryptos in India, Gopal Krishna Agarwal, the author of the article published in the journal stated that the main purpose of currency is to process a transaction. Despite being used as a medium of exchange, cryptos are seen as an asset class, which has a storage value.
Agrawal, further in his article stated, “This is because of the regulatory gaps at present. Recent developments show that the time has come to fill up this gap as soon as possible.”
As per the media reports, the current value of the Indian crypto market is at $1.4 billion with the investment made by around 8 million users.
Agarwal, who is also the spokesperson of Bharatiya Janata Party (BJP), while citing these media reports stated that the crypto regulation will the Indians neutralizing their fear in the market.
The article further noted, “The whole ecosystem is operating in an unregulated regime, neither being illegal with markets ripe with speculations that the government is ready to ban them at any point of time in the near future. The investors and the intermediaries operate in an uncertain environment and live-in anxiety, leading to hyper speculation.”
Nirmala Sitharaman, the Finance Minister of India, in her recent interview has stated that the Indian Government would support new technologies. But when it comes to cryptocurrencies, the government has some unresolved issues.
Sitharaman has informed that after consulting the Reserve Bank of India, the Indian Government is working on its crypto-related policies.
For the past few years, several central banks including the RBI, have raised their concerns against private cryptocurrencies. Despite the growing issues of the banks around the world, the citizens have always supported these digital assets, therefore, to counter them, many central banks decided to launch their own central bank digital currency.
India is also working on its CBDC and is planning to introduce it in the country, in different phases.
In his opinion piece, Agrawal supported blockchain technology, which is used by the developers for creating cryptocurrencies. He believes that the technology could help revolutionize the business ecosystem of India.
Agrawal states, “The whole ecosystem is operating in an unregulated regime, neither being illegal with markets ripe with speculations that the government is ready to ban them at any point of time in the near future. The investors and the intermediaries operate in an uncertain environment and live-in anxiety, leading to hyper speculation.”
India is also working on the Cryptocurrencies and Regulation of Official Digital Currencies Bill, 2021, to bring the right balance between the adoption of technology and transparency and financial stability.