Cryptocurrencies not considered as legal tender or coins: Government
The decision comes on the back of the Inter-Ministerial Committee's ban on all cryptocurrencies in India except the ones issued by the state
The government does not consider cryptocurrencies as legal tender or coin, and would take all measures to eliminate the use of them in financing illegitimate activities or as a part of the payment system, minister of state for finance, Pankaj Chaudhary, said in a written reply at Rajya Sabha on Tuesday.
This comes on the back of the inter-ministerial committee’s study on the issues relating to virtual currencies (VCs), which had recommended all cryptocurrencies except the ones issued by the state, be prohibited in India.
“The government would take a decision on the recommendations of the committee and the legislative proposal, if any, would be introduced in Parliament following due process”, the minister said.
However, Chaudhary added that the government would explore the usage of blockchain technology proactively for ushering in a digital economy.
Finance ministry was considering ban last week
On August 2, the Lok Sabha was informed that the government is considering the inter-ministerial committee report on banning cryptocurrency and would take a call on whether a new law would need to be brought to Parliament.
“As for private cryptocurrencies, given the risks associated with them and volatility in their prices, the group has recommended the banning of cryptocurrencies in India and imposing fines and penalties for any of the activities connected with cryptocurrencies in India”, said a release from the committee that came last week.