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Official Digital Currency Will Kill Cryptocurrency: Former Finance Secretary Sc Garg

India’s cryptocurrency ecosystem is on the rise after the government proposed to legislate a ban on private cryptocurrencies during the upcoming winter session of Parliament. Details of the bill are still pending and sources say the cabinet did not address it at its meeting today (November 24).

The Union government says the proposed law aims to create a framework to facilitate the creation of an official digital currency by the Reserve Bank of India. The government also said the law aimed to “ban all private cryptocurrencies.”

So how should India treat cryptocurrencies to discuss this CNBC-TV18 spoke to former finance secretary SC Garg who led a panel that proposed a total ban on all cryptocurrencies.

According to Garg, the time for digital currency has come.

“We need to introduce a digital currency which is the first aspect this bill also talks about – that the government and the RBI will come up with a digital version of the currency. If this digital version of the currency comes in my opinion, the private crypto -currency or private digital currencies will disappear automatically, ”he said.

Exemptions in cryptocurrencies

The former finance secretary said the bill, as he claims, will have some exemptions.

“Platform services, like in many clubs, malls, etc., can be exempt for the system to work. Payments will also be made on this platform using this currency. But that would be a very difficult call to take. is a complex system, something like that will have to be done. So I think we will have to take a careful look at what needs to be exempted and if we can understand that correctly, I think solving the issue of its use as currencies outside the system, or outside the platform would be much easier. Garg said.

What the 2019 bill proposed

The bill sought to “ban the exploitation, possession, sale, trade, issuance, disposal or use of cryptocurrency in the country.” up to 10 years or both.

He added that a person must declare and dispose of any cryptocurrency in their possession within 90 days of the start of the act.

Garg explained that in 2019 other aspects of cryptocurrencies like assets etc. had not been said.

“That was the weakness of this bill. Now, over the last two or three years, we’ve learned a lot more about the versatility and usefulness of blockchain technology in creating many assets and other services. You can’t not just to say that the cryptocurrency equals the entire cryptocurrency ecosystem that will have to be separated. Treating the whole as one currency will be a great tragedy, it will be a great loss for the nation and not just for investors, ”he said.

For the full interview, watch the accompanying video

(Edited by : Abhishek Jha)


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