What will the Cryptocurrency Bill mean for the currency, asset and utility?

Finance minister Nirmala Sitharaman has said that all cryptocurrencies won’t be shut off. Following the finance minister’s statement, the Reserve Bank of India has sought to ban cryptocurrencies. What does it mean for the cryptocurrency world? Will it be a ban only on the currency part to set aside the asset and utility part? Here is what experts have to say:

S C Garg, the former finance secretary who also headed the inter-ministerial committee on cryptocurrencies, said “It was a balanced report, which said outlaw the currency aspect of it. But promote the other aspects of cryptocurrencies, especially using the key technologies of blockchain and cryptography.”

Sumit Gupta, CEO and Co-founder CoinDCX said, “The very fact that the FM has mentioned a willingness to experiment, shows the government’s resolve in bringing digital revolution. Collaborative efforts between stakeholders like us and the government is a must. Research and Development will provide scope for a robust fintech ecosystem to be developed within India. The focus will be to build and explore new indigenous products and financial technologies while strengthening our monetary policies and accelerating technological development.”

He added, “We are consistently engaging with the government and relevant stakeholders for a positive framework. We are confident that a positive move at this point can unleash a host of opportunities for our country including the attention of high-profile global investors and technologists that can offer us the right backing in our pursuit to become a global power.”

What will happen if the asset and utility part also gets banned?

Sajai Singh, Partner, J Sagar Associates, said, “In any event, cryptocurrency holders will be given time to liquidate their assets. The Bill will address all kinds of crypto-assets including Bitcoin, Dogecoin and other cryptocurrencies. I await the Government’s proposed framework for an official digital currency. There is far more anticipation around that. In terms of enforcement of criminal provisions, one would need to wait and see whether the current (booming) market dynamics will influence the Government’s decisions.”