The rapid emergence and growth of digital currencies have raised concerns about their potential for financial regulation. India joins a growing list of countries that are considering regulating cryptocurrencies.
According to Indian Finance Minister Nirmala Sitharaman, the government is planning to introduce a bill that would recognize cryptocurrencies as a tradeable asset class. This bill would also provide a provision that would offer an exit option for investors.
A report by a committee on cryptocurrencies in India recommended that all private players be banned from using digital assets. The committee’s recommendation comes amid growing concerns about the use of virtual currencies in India.
The Reserve Bank of India, which is the country’s central bank, has also expressed its concerns regarding the use of cryptocurrencies in the country. Other countries, such as China and El Salvador, have also made their stance clear on cryptocurrencies. In July, Bitcoin became the first crypto legal tender in El Salvador.
El Salvador’s decision to accept Bitcoin as a legal tender was widely expected. Although many countries have already made their stance clear on cryptocurrencies, other nations are also slowly opening up their borders.
China, on the other hand, has been cracking down on Bitcoin and Bitcoin mining. Its stance seems to be aimed at paving the way for the issuing of a central bank digital currency. In India, regulators and members of parliament are starting to soften their stance on cryptocurrencies.
According to a news report, India’s parliament is planning to introduce legislation that would allow authorities to classify Bitcoin as an asset class. This move would represent a significant change from the government’s earlier plans.
At the start of the year, the parliament had planned to draft a law that would have banned the use of cryptocurrencies. A news report later stated that the government planned to ban Bitcoin and other virtual currencies.
Times Are Always Changing
In a sign of the times, Coinbase, which went public in the US earlier this year, is starting to look for ways to expand its presence in India. In a blog post, the company announced that it would offer cryptocurrency as an incentive to hire local talent.
In a different blog post, Coinbase noted that it would give $1,000 in cryptocurrency to help build a high-quality tech hub in India. The company noted that starting salary for new employees in India would be $1,000 in cryptocurrency.
The incentive program, which is called Cikka, will also provide an opportunity to learn about cryptocurrencies. According to the company, it’s hoped that the program will help people learn about crypto and develop new products that will be valuable to their customers.
China’s move may free up capital flows and attract more talent to the budding crypto industry in India. In March, a news report stated that the government would allow individuals to experiment with Bitcoin and blockchain. It also noted that the ban would not be extended to other cryptocurrencies.
It’s also possible that the government could eventually allow the development of a national digital coin. This would give India more control over how the currency would be used and administered.