Cryptocurrency Has Financial Stability Issues: Senior Economic Advisor
- Al Salvador Adopts Bitcoin But There Are Still Financial Stability Issues
- This is the subject of debate both within the government and in Parliament: Sanjeev Sanyal
- Prime Minister Modi had chaired a meeting on the way forward to manage the cryptocurrency sector in November 2021
Al Salvador has embraced bitcoin but there are still financial stability issues related to the cryptocurrency highlighted by the Reserve Bank of India, chief economic adviser Sanjeev Sanyal said on Monday and noted that the government would take a “balanced view “.
“It is a matter of debate both in government and even in Parliament. It is something that is currently under discussion. We understand the various issues that arise from this. RBI has highlighted the impacts of this on financial stability. We can also see it in other countries, for example, El Salvador has embraced bitcoin,” Sanyal said in response to a question about cryptocurrencies during a press conference here.
“There are financial stability issues. But there are also other arguments that are being made in terms of innovation etc. A balanced view on this will be taken. This is not something we have covered in the economic survey, and I’m not quite in a position to comment on the current thinking because it’s still evolving,” he added.
Prime Minister Narendra Modi had chaired a meeting on the way forward to manage the cryptocurrency sector in November last year.
Consensus had emerged at the meeting for “progressive and forward-looking” steps while ensuring that an unregulated crypto market does not become a conduit for “money laundering and financing.” of terrorism”. The meeting was the result of a consultative process involving the Reserve Bank of India, Ministry of Finance and Ministry of Home Affairs as well as experts.
The government intended to introduce a cryptocurrency bill in the winter session of parliament, but decided to hold more deliberations before proposing legislation.
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