Renowned economist and member of India’s Monetary Policy Committee says a total cryptocurrency ban is difficult to implement and “would only increase illegal activity and participation in the darknet“. She believes crypto assets and the industry as a whole should be regulated instead.
Complete ban is too difficult to implement
Ashima Goyal, a member of India’s Monetary Policy Committee, spoke about cryptocurrency in an interview with PTI on Sunday. The Monetary Policy Committee (MPC) determines the key interest rate required to achieve the tolerable level of inflation.
Ms. Goyal has served on several government committees, including the Prime Minister’s Economic Advisory Board and the Reserve Bank of India (RBI) Technical Advisory Committee for Monetary Policy. His research in the areas of institutional macroeconomics and open economy, international finance and governance is widely published.
Responding to a question about cryptocurrencies, she said that they should be referred to as crypto tokens instead, as they are not acceptable or adequate as currencies. In addition, she stressed that they should be banned as legal tender, but regulated as tokens.
The economist added:
“Only large transactions, emanating from‘investors aware of the risks, may be allowed.“
Then, she clarified:
“A total ban is difficult to implement and would only broaden the spectrum of illegal activity and participation in the darknet.“
India and crypto regulation
At its recent Central Board of Governors meeting, the RBI urged the government to to forbid completely cryptocurrency into the territory of the subcontinent, stating that a partial ban would not work.
Recently, the RBI also concluded that cryptocurrencies are “prone to fraud and extreme price volatility“, Stressing that they”pose immediate risks to customer protection and the fight against money laundering (AML) and the financing of terrorism (CFT).“
Currently, there is no specific law regulating the field of cryptocurrency in India, but the Indian government is working on a legislative framework for cryptocurrency. However, a cryptocurrency bill that was due to be considered in the winter session of Parliament was ultimately not considered. The government is said to be reworking this bill.
India appears to have a long way to go before reaching consensus on crypto regulation. Some experts have spoken on several occasions, noting what they expect once the law finally comes into force. Hopefully the Indian government will be able to find the right balance for DeFi and TradFi to coexist successfully.
Source: Bitcoin.com
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Salome Guerin
If cryptocurrencies are synonymous with financial freedom, then they must play a key role in the financial empowerment of women. With the right education, crypto can be a powerful tool in fighting the battle against gender inequalities.
