Indian Economic Advisor Advocates Bitcoin Innovation Amid Regulatory Debate
Indian Economic Advisor (CEA) V. Anantha Nageswaran has asked regulators to be innovative with cryptocurrencies, Bitcoin and online gaming while being transparent and responsible.
At the Global Economic Policy Forum 2024, Nageswaran said that innovation has to be balanced with social costs and benefits, especially in a financially illiterate country like India.
This comes at a time when India’s crypto regulations are under fire, with a 30% tax on crypto profits and limited banking support for crypto companies. Nageswaran said regulators should not block “moonshot” innovations and asked for transparency from both regulators and the regulated. He also said regulators should be aware of the limits of their unelected authority and have a balanced framework that promotes growth while managing risks.
Shaktikanta Das Promotes Digital Rupee Adoption
On his last day as RBI Governor, Shaktikanta Das reiterated his support for India’s central bank digital currency (CBDC), the Digital Rupee. Das called it the “currency of the future”. India has made good progress on CBDC development and the Digital Rupee can reduce dependence on traditional cryptocurrency and improve transaction efficiency. He also said they will work with SEBI to have a unified crypto policy, so good signs for the Digital Rupee use cases.
Challenges Facing India’s Crypto Sector
India’s crypto space is still facing high taxes and regulatory ambiguity. The $230 million WazirX hack has added to the woes of crypto exchanges. But Nageswaran’s comments indicate that there is slowly recognition of the role of Bitcoin and blockchain in India’s growth.
Key Points:
Regulatory Balance: Nageswaran called for innovation-friendly policies while managing social costs and risks.
Digital Rupee Progress: Shaktikanta Das sees CBDCs as a transformative tool for India’s economy.
Industry Struggles: Heavy taxation and restrictive policies continue to challenge India’s crypto exchanges.
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