No intention to introduce cryptocurrency: Government to Rajya Sabha

There are no plans for the government to introduce cryptocurrency, Finance Minister Pankaj Chaudhary told Rajya Sabha on Tuesday.

Currently, cryptocurrencies are not regulated in India, he said in a written response.

“The RBI does not issue cryptocurrencies. The traditional paper currency is legal tender and the RBI issues it in accordance with the provisions of the 1994 RBI Act. The digital version of the traditional paper currency is called the Central Bank Digital Currency (CBDC),” he said.

The RBI is currently working on a phased implementation strategy for the implementation of the CBDC and is examining use cases that can be implemented with little or no disruption, he said in another response.

Incorporating the CBDC has the potential to provide significant benefits, such as a reduction in cash dependency, greater dominance due to lower transaction costs, and so on.

The printing of notes has slowed down over a period of time, he said, with notes worth € 4,378 million being printed in 2019-20 and falling to 4,012 million in 2020-21.

In answer to another question, the financial health of the country has many aspects.

“A stable stock market, along with a well-functioning and sophisticated market infrastructure, is an indicator of a country’s financial health. so is the confidence behind the economy, ”he said.

However, he said that in the short term, the stock market is largely driven by economic and geopolitical events.

Exchanges charge exchange broker fees to the broker, which can be addressed to clients, he said, adding that the transaction fee is mentioned in the contract notice issued by the broker to the client.

Taxes levied on the sale and purchase of shares, including taxes levied on exchanges, are mentioned in the contract notice issued to clients at the end of each trading day, he said.

Cryptocurrency is a non-regulated digital currency, not a legal tender and subject to market risks. The information provided in this article is not intended to be financial advice, commercial advice or any kind of advice or recommendation offered or accepted by NDTV. NDTV shall not be liable for any losses resulting from investments based on any recommendations, forecasts or other information contained in this article.

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