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Crypto may become another form of Currency in India: Report

This week has been a roller coaster ride for Cryptocurrency enthusiasts in India. While the price of the assets have reduced by a double digit percentage figures, India seems to be on another train ride.

On Tuesday, it came to light from an RTI response that RBI’s decision to virtually ban cryptocurrency was based out of no research or consultation. On Wednesday, the mainstream media began reporting that Indian Government is in favour of regulating cryptocurrency not banning it.

Today, Cogencis, the breaker of Wednesday’s ‘good’ news published a report, and it is no short of surprising.

Regulations Underway

An anonymous Finance Ministry official spoke to Cognenics about the current scenario in the committee setup to make a decision on Cryptocurrencies. The source revealed that committee has seen the merits of cryptocurrency and hence is veering towards regulating it and not banning it.

The official also spoke about the timeline, saying the report should be ready by December.

A short reminder to you that RBI’s deadline for banks to cut ties with exchange is July 5, 2018. We don’t know if the government body will intervene to extend the deadline.

Formulations to Identify Users

The committee is planning to formulate an approach so that crypto transactions created by individuals can be linked back to them. As reported, the official said,

“Cryptocurrency has certain advantages also, it is easy to transact, it also leaves a trail, but there are certain issues about it, such as, it is not possible to know who transacted with whom. We are discussing this as well, if we can formulate a system to identify those who conduct exchanges in crypto currency”

Crypto as Currency

Once a system to identify all transactions is in place, the official says, the panel will continue to discuss the possibly of use of cryptocurrency as another form of currency itself.

The contingency to the above plan is that the panel should be able to regulate it properly.

The Blockchain and Cryptocurrency Committee headed by Ajeet Khurana, the CEO of Zebpay, has previously agreed to provide a system to the government which can provide list of transactions done by an individual from any Indian exchange.

What do you think the Government should do? Let us know in the comments below


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