Chitrakoot UP. Former Deputy Governor of RBI (Reserve Bank of India) R. Gandhi said on Tuesday that crypto should not be considered a currency but it should be considered as a separate asset class and should be regulated as such. He says this will help governments around the world effectively deal with illegal activities involving virtual currencies.
R. Gandhi says that crypto cannot be a currency because the fundamental element of currency is that it should be legally valid which is not in its case. In this case no one can force anyone to accept Crypto as a currency because it is not legally valid. Gandhi said there is a general consensus among many policy makers that it should be treated as an asset and not as a currency. It should not be accepted as a payment instrument or financial instrument as it has no clear issuer. He said at a virtual event organized by Internet and Mobile Association of India (IAMAI) and Blockchain and Crypto Assets Council (BACC) that it would have been easier to regulate if it was accepted that cryptocurrencies are not a currency but an asset. They have expressed their apprehension that in the absence of regulation, this virtual property can be used for criminal activities. Last month, Finance Minister Nirmala Sitharaman also said that the proposed legislation regarding cryptocurrency is pending before the Union Cabinet.
The Inter-Ministry Committee on Cryptocurrencies has recommended in its report that all private cryptocurrencies, except any state-issued virtual currency funds, should be banned in India. Meanwhile, the RBI has expressed concern over the crypto currency that has entered the market and has also informed the government about it.
Keep reading Sandhya’s report on thebawabilat to know about such new news.