Delay In India's Crypto Bill Justified Due To Its Complexity: Experts

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The delay in India's cryptocurrency bill is justified, due to its complexity

The delay in India's cryptocurrency and digital assets legislation is justified because of its complexity and the impact such a decision will have on investors and broader financial markets, said experts.

In its current form, the Cryptocurrency and Regulation of Official Digital Currency Bill aims to ban all cryptocurrencies as a payment method in India, barring a few private coins to promote underlying technologies, even as it allows the Reserve Bank of India to set up an official digital currency.

The Reserve Bank of India made clear its reservations and, in repeated messages, has said it was in favour of a complete ban on cryptos highlighting concerns relating to macroeconomic and financial stability from virtual currencies, the challenge of exchange management, monitoring and regulating such assets.

However, the government had previously said it aims to promote underlying technologies such as blockchain. Industry experts, too, opine that reforms to the bill with more comprehensive consultations can take India to the forefront of blockchain tech.

Finance Minister, in her budget, announced the RBI would introduce the digital rupee within the following year. 

While the Central Bank Digital Currency (CBDC) and cryptocurrencies are different, experts agree they require extreme planning.

"Both require meticulous planning and fiscal-monetary policy coordination. The political economy of the digital currency is tricky, and so far, there is no internal inconsistency between the RBI and the ministry of finance on this. The deliberations are time-consuming," Lekha Chakraborty, Professor at the National Institute of Public Finance and Policy, New Delhi. 

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