Indian Govt said Tuesday that it’ll take measures to eliminate the use of crypto-assets as part of the payment system, According to Economic Times. The letter specified that the government will take steps against the usage of cryptocurrency in funding illegitimate activities.
“The government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system,” said Minister of State for Finance Pankaj Chaudhary in Rajya Sabha. He also added that the government is keen on exploring blockchain technology for paving the way for the digital economy.
A High-Level IMC constituted under the chairmanship of the Secretary of Economic Affairs to study the issues related to virtual currency. The committee proposed specific actions for the matter. The reports also, recommends that India will prohibit all private cryptocurrencies except for the state-issued.
The minister added that the Centre would take a decision on the IMC’s recommendations and will introduce it in the parliament in due process.
The news comes after the RBI governor’s comments on the apex bank’s concerns regarding crypto. “Central bank digital currency is one thing. The cryptocurrencies which are traded in the market are something else. Both RBI and government are committed to financial stability. We have flagged certain concerns around these cryptocurrencies which are being traded in the market. We have flagged certain major concerns to the government,” Das had said in May.