The former Deputy Governor of the Reserve Bank of India (RBI) recently spoke about the national financial and cryptocurrency ecosystem. He said digital assets should be accepted in India, not banned.
RBI, rebellious India and cryptocurrencies
Former Deputy Governor of the Central Bank of India, Rama Subramaniam Gandhi, addressed the HODL 21 virtual conference hosted by India’s IAMAI and the Blockchain and Cryptocurrency Assets Council this week.
Here Gandhi stated that cryptocurrencies can be used to pay for economic activities and sees them more as an asset class. However, the current situation in India seems rather hostile to cryptocurrencies. Earlier this month, the Indian government announced a bill defining cryptocurrencies as commodities.
The central bank banned all commercial banks from allowing its customers to conduct cryptocurrency transactions, but the decision was overturned by the Supreme Court last year. Gandi argued that cryptocurrencies should be treated as assets.
Developing the right regulatory framework would allow Indians to invest and hold cryptocurrencies. Rama Gandhi also said the government should have an open mind to economic transactions involving cryptocurrencies, but warned against anonymity functions. He stated:
“The state will always want to give its citizens freedom in economic transactions. It enforces contractual obligations and taxes income and profits. So any economic activity should be open to these kinds of things. “
India has been tackling strict regulations for cryptocurrencies in recent months. The regulatory situation in India thus remains unclear. However, a total ban on cryptocurrencies in the country would be a problem. You can find the link to the whole conference HERE.