Parliament Watch: Cryptocurrency regulation, complaints against Uber & Ola, objectionable comments by judges

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To a question raised by Thol Thirumaavalavan about Cryptocurrency and its regulation in India, Finance Minister Nirmala Sitharaman replied in the Lok Sabha that the Reserve Bank of India (RBI) has called for the prohibition of such currencies.

Noting that RBI has registered concern over the adverse effects of Cryptocurrency on the Indian economy, Sitharaman stated,

“RBI mentioned that cryptocurrencies are not a currency because every modern currency needs to be issued by the Central Bank Government. Further, the value of fiat currencies is anchored by monetary policy and their status as legal tender, however the value of cryptocurrencies rests solely on the speculations and expectations of high returns that are not well anchored, so it will have a de-stabilising effect on the monetary and fiscal stability of a country.”

On the topic of legislation to regulate Cryptocurrency, the Finance Minister said in the reply,

“Cryptocurrencies are by definition borderless and require international collaboration to prevent regulatory arbitrage. Therefore any legislation for regulation or for banning can be effective only after significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards.”

During last year’s Winter Session, the government had tabled The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 that seeks to prohibit all private cryptocurrencies in India.