India’s Finance Minister Nirmala Sitharaman is not convinced that blockchain technology is being used for tradable assets. Meanwhile, the country is collaborating on global regulation And is making progress on its Digital Rupee CBDC.
India’s Finance Minister Nirmala Sitharaman has said that the government was uncomfortable using blockchain technology for tradable assets. Sitharaman made the statement during her visit to the United States, in which she will attend the annual meeting of the International Monetary Fund (IMF) and the World Bank and the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting.
The Finance Minister himself is happy to allow technology to be used for various purposes and wants the country’s fintech sector to flourish. However, she was clear on the fact that she accepted This would lead to misuse of technology.
“But if it is a question of the platform, that is, trading on assets created, and buying and selling and making profits, are we in a position to establish what purpose it is being used for? Are countries in a position to understand currency trading?
He also pointed out that there has to be international cooperation in the matter of regulation, which he feels is necessary. He clarified that India will definitely have crypto regulations and will cooperate with the G20, the World Bank and others to discuss the matter.
Meanwhile, industry people responded to the comments, saying that crypto regulation would help fuel innovation. Others pointed out that the economics that Sitharaman criticized was a fundamental part of technology.
Regulations are already underway
India will discuss crypto rules At the upcoming G20 meeting, but officials are already preparing for a possible change of rules. The country can impose Goods and Services Tax (GST) on the asset class, which could already go above the heavy crypto tax plan in India. There is no confirmation on this, and the tax could be between 18 and 22%.
India has also said that it will finalize the legality of cryptocurrencies in the first quarter of 2023. It will have to respond to the Financial Action Task Force (FATF) by May, and in the meantime, it is brushing off some of the difficulties of examining the market. ,
officials are also looking at citizens who are transfer their funds To buy property abroad. Indians are using their crypto holdings to buy real estate in Dubai, where many entities accept crypto. The government says this is a violation of laws and could result in legal consequences.
Appreciating Blockchain Technology and CBDC Potential
India itself has been very keen on blockchain technology. There have been a number of developments supporting its use, including the fact that Polygon powered the first police reports on the blockchain, which allowed users to file complaints against the police without fear of dismissal or manipulation.
Sitharaman also believes in the potential of blockchain technology, saying at a conference that it will grow by 46% in the next few years. He said that banks will be increasingly digital. India plans to use the technology in several industries including healthcare, finance and law enforcement.
Meanwhile, the country is also working on its own CBDC. The Reserve Bank of India recently released a concept note on the digital rupee. a pilot for Indian CBDC Will start soon.
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