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No plans to boost cryptocurrency sector in India, FM NS to Lok Sabha

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No plans to boost cryptocurrency sector in India: The finance ministry on Monday told Parliament that the government had no plans for boosting the cryptocurrency sector in India and the proposed Central Bank Digital Currency (CBDC) will not have volatility, which is normally associated with the private virtual currencies.

However, there are associated risks with CBDC which need to be carefully evaluated, the Lok Sabha was informed. “As CBDC is backed by the central bank of a country, apart from other benefits, it will not have volatility which is normally associated with the private cryptocurrencies,” the minister of state for finance told the Lok Sabha in a written reply.

“A Bill on cryptocurrency and regulation of official digital currency has been included for introduction in the Lok Sabha and is expected to be taken up during the current Session,” the reply stated.

RBI Governor Shaktikanta Das has also reiterated his views against allowing cryptocurrencies saying they are a serious threat to any financial system since they are unregulated by central banks.