India Finalising Consultation Paper on Cryptocurrencies, Says DEA Secretary Ajay Seth

Economic Affairs Minister Ajay Seth said on Monday that the government will soon finalize an advisory paper on cryptocurrencies with input from various stakeholders and institutions, including the World Bank and the International Monetary Fund. He also emphasized the need for a global response to deal with issues related to cryptocurrencies as they operate in the virtual world. The Reserve Bank of India (RBI) has on several occasions expressed reservations about such virtual currencies citing a threat to macroeconomic stability.

Speaking on the sidelines of the unveiling event of the “Iconic Week” as part of the Azadi ka Amrit Mahutsav being celebrated by the Ministry of Finance, Seth said the advisory paper is more or less ready.

“We have consulted not only local stakeholders but also organizations such as the World Bank and the International Monetary Fund. Therefore, we hope to be soon in a position to finalize our consultation paper,” he said.

At the same time, he said, India also started working on some kind of global regulation.

“Countries that have banned, they cannot succeed unless there is a global consensus on that. There has to be a broad framework for participation. Digital assets, whatever way we want to deal with those assets, there has to be a broad framework where all economies have to be. Together. No country can choose either position. We need a global consensus on regulating digital currencies.”

If you remember, the Prime Minister made this remark over and over, Seth said.

Expressing hope, he said India is poised to become the fastest growing among the world’s large economies despite global challenges.

“We can overcome the current challenges as well as the challenges that will face us in the coming years in Amrit Kal. There are global headwinds that have affected the global economy,… Despite all that, India is ready for it to grow the fastest among all the major countries in the world. It was That was the situation six months ago and that will be our assessment until today.”

Seth also emphasized that inflation should be moderate with the help of both fiscal and monetary measures.

When asked about further measures envisaged to calm prices, he said, that the situation is developing and it is difficult to determine possible future steps.

He added that whatever the current challenges are, they will be answered in a timely manner.

Earlier this month, the government announced several measures, including reducing the excise tax on petrol and diesel prices by Rs. 8 per liter and Rs. 6 per liter respectively.

With moderation in commodity prices, he said, “We expect inflation to be moderate in the coming months, that is why any steps required from the fiscal side have been taken and the Reserve Bank of India is also taking these measures.” When asked if geopolitical tension could affect growth, he said, “When there are headwinds, things obviously slow down.” At the time of the budget, he said, “One of the estimates was that the Indian economy would grow at 8-8.5 per cent, the budget was assuming 7.5 per cent, at that time… I didn’t see any rating agency talking about a number lower than this. This is a dynamic situation … Please understand that we are somewhat integrated with the global economy.According to the economic survey, India’s economy is expected to grow by 8-8.5 percent in the fiscal year starting on April 1st.

The International Monetary Fund recently cut its growth forecast to 8.2 per cent which is higher than the 7.2 per cent set by the Reserve Bank of India.

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