India’s middle path on crypto-currency

India’s middle path on crypto-currency

Team ambitiousbaba and AB are here with a Current Affairs Special Series. In this series, candidates will be introduced to current affairs topics daily, which will not only improve their general awareness but also will ensure that the candidates do not lack in any current affairs topic. Today’s Current Affairs topic is India’s middle path on crypto-currency.

Indian government is going on its middle path on crypto currencies as it would be settle legislation on the virtual asset to be introduced in the upcoming winter session of Parliament.

What is virtual currency?

• It is a digital representation of value only available in electronic form. Its transactions can be done via the internet.
• Virtual currency is a subset of digital currencies and it contains other types of digital currencies like crypto-currencies.
• Virtual currencies are issued by private organizations or group of developers and are mostly unregulated.

As per the government statement, the firm and uncompromising position for an outright ban of crypto currencies is not being found executable due to large investments in such instruments by Indians, and these non regulated virtual currencies are also unlikely to be permitted as a legal tender.

The person said a developing view within the policymakers in the government is that law should be drafted in a manner that it can be executed effectively and technological developments in digital space should be taken into Range of what one can know or understand.

First time the government has named the Crypto currency and Regulation of Official Digital Currency Bill, 2021, for the budget session, but it was not introduced for wider reference. An inter-ministerial group was afterward set up to check out the draft and issues around such currencies.

Finance Minister Nirmala Sitharaman said that “she is not saying no to crypto-currency and she said government of India will have to see how this technology can help fintech to maximize the potential that it has.”

Question & Answer:

Q1. Who can regulate virtual currencies in India?

Ans. Government of India (Finance Ministry)

Q2. Give an example of digital currency?

Ans. Bitcoin, Ethereum, Litecoin etc.

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