Earlier this month, the Finance Minister of India, Nirmala Sitharaman, revealed that the Reserve Bank of India (RBI) sought a ban on cryptocurrency in the country. According to Nirmala Sitharaman, multinational combined efforts are essential to make crypto laws effective in India.
While making a statement in the Lok Sabha, Sitharaman shared her opinion that as cryptocurrency is borderless, international collaboration is necessary to effectuate its regulation. The CEO of BuyCoin, Shivam Thakral, supported the finance minister’s goals to achieve international collaboration for the regulation of cryptocurrencies.
RBI’s stance on Digital Currencies
Earlier, the Reserve Bank of India had expressed its concerns about the “destabilizing effect of cryptocurrencies on the monetary and fiscal stability of a country”. The finance minister remarked that the RBI did not consider cryptocurrencies as currency in India at all. This is mainly because every valid currency is issued by the Government or the Central Bank of a country. Even before this, in 2018, the RBI had tried to ban its entities from dealing in virtual currencies. However, such a ban was set aside by the Supreme Court of India.
Cryptocurrency has already become a popular global phenomenon. Owing to its borderless nature, no nation can limit the scope of cryptocurrencies. As the finance minister puts it, international collaboration on policies and regulations is essential for the regulation of cryptocurrencies. A homogeneous international framework for the regulation of cryptocurrencies is the need of the hour, according to Tarush Mittal, COO, and Co-founder of UniFarm.