Awaiting Cabinet Approval says FM Nirmala Sitharaman on Cryptocurrency Bill

Shivani Pandey-

Published on: August 17,2021 15:50 IST

Finance Minister Nirmala Sitharaman on Monday stated that she was awaiting approval from Cabinet on bills related to Cryptocurrency. The Panel on Cryptocurrency under the leadership of Secretary of Economic Affairs formulated to study the issues related to virtual currencies and propose specific actions had submitted its report earlier.

The Panel on Cryptocurrency recommended that all private cryptocurrencies, else the virtual currencies issued by State, will be banned in India.

The Reserve Bank of India had concerns about the Cryptocurrencies traded in the market and has intimated the same to the Government.

In the pertaining issue, RBI Governor Shaktikanta Das had stated that “there are no differences between the central bank and the Finance Ministry on the matter, and we should now await the final decision on the matter from the Centre”.

The Supreme Court in March had allowed Banks and Financial Institutions to provide services related to Cryptocurrencies by disallowing the RBI’s 2018 Circular which had denied them.

A Three-Judge Bench, headed by Justice R F Nariman, had said that the Reserve Bank of India (RBI) is bound to be set aside on the grounds of “proportionality”.

Cryptocurrencies are nothing but digital or virtual currencies where encryption techniques are used to monitor the generation of the units and cross-check the transfer of funds, functioning Independently of a Central Bank.

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