Topic: Is there any contradiction among different departments regarding Crypto? (Read 59 times)

Good one! But it is indeed true that government departments usually do not coordinate with each other. I can guarantee this from my 2 years experience of government project. But here the case is little different.

RBI is not directly linked to finance Ministry. RBI can take their own decisions without going through FM as they are the controller of banking system. But when it comes to policy and non-related to banking, FM must step in.

But one thing I can assure you, FM will definitely consult RBI before putting the bill on the table.

This has been happening since 2018. Either the government does not know what they want or those sources these media houses have just trying to create FUD and panic among the crypto community. The government has to make a decision fast they cannot keep everyone hanging in between.

Most of those who are in the ruling party never went to college or have an idea about Information technology. All decisions are being taken by the PMO about the current economic situation whereas the FMO is sitting ideal. Do you think an officer in PMO is trained to take such a decision?

RBI reports to the FMO and not the PMO this is causing too much confusion within the depratments.

No department in India has any idea so far how to classify cryptos, even the court while deciding on the RBI ban was confused about how to classify crypto, only when parliament would give assent to any bill relating to crypto, they would define what cryptocurrency mean within the jurisdiction of India, will it be a currency, a virtual currency, a commodity or just a form of synthetic Investment, until now, every department is just trying to do what they can do about cryptos in the country, RBI trying to regulate it through banks, IT-Department trying to seek information regarding crypto holdings, Cabinet trying to draft bills on it.

The government's stand is typical of politicians. They are reading the mood and don't want to dampen the idea that cryptocurrency startups have the potential to provide a lot of jobs as well as international funding for the young developers.

The RBI on the other hand is just another one of those "borrowed institutions" of India which have traditionally relied on tried and tested international formulae. This is the misfortune of India as a country. When it comes to any sort of innovation, standards and basic research, Indians always shy from breaking new grounds. Be it technology, social science or economics; the much heralded indian intellectuals prefer to follow the lead of the "Gora Saab". The Gora Sabb of RBI, the IMF, has clearly taken the stand that "Cryptocurrencies can cause instability", notably in case of El Salvador. Shantikanta is just doing what we Indians are ingrained for, follow the lead and parrot the same thing as expert advice, without even considering the positive effects for a moment. Doing that would require courage and original thinking, stuff that is hard to find amongst Indian intellectuals.

I don't think this would make much of a difference to the final bill. The government will not want to appear as digitally uneducated and cowardly. The bill will most probably follow the commodity classification and then leave it upto the SEBI and other Industrial bodies to play with it. The Govt hasn't been a big fan of RBI and i hope that there copy-pasted opinion is set aside.

September 03, 2021

- Govt plans to bring a bill, cryptocurrencies to be treated as commodity

- https://economictimes.indiatimes.com/news/economy/finance/virtual-currencies-govt-plans-to-bring-a-bill-cryptos-to-be-treated-as-commodity/articleshow/85885645.cms


September 10, 2021

- RBI Governor Shaktikanta Das expresses 'serious concerns' on financial stability of cryptocurrency

- https://www.moneycontrol.com/news/business/have-serious-major-concerns-on-cryptocurrency-says-rbi-governor-shaktikanta-das-7450371.html


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