The Indian authorities are still against this cryptocurrency, but are interested in tokenization assets


The Indian authorities are still against this cryptocurrency, but are interested in tokenization assets

In the ongoing Indian cinema on the regulation of the cryptocurrency industry has a new storyline. No, the Indian authorities have not changed their attitude towards cryptogram, but as it turned out, I have nothing against tokenization of normal assets using the blockchain.

The government of India, in details having studied the question, came to the conclusion that cryptotoken can be quite useful and effective tool. Currently, officials are working on a package of documents governing the treatment of such assets, which will then be submitted for review and approval to the Parliament.

However, according to local press, the abrupt liberalization would expect in any case not worth it. The government comes from the logic that unlike cryptocurrency, which tend to be the equivalent of money, cryptotoken is a digital copy of an already existing asset, including cash.

“The government Committee is studying how to replace tokens existing tools, such as smart cards for public transport, in the public sector — quoted by local press sources in the Cabinet of India. In the private sector, the tokens can be used in loyalty programs such as air miles available, etc. where their usage is restricted —you can buy them a new ticket or receive a discount but can’t exchange them for money.”

Thus, cryptotoken in the case of their introduction is unlikely to be a replacement for Fiat money, in any case, officials do not consider such a use case.

“For the token will have to pay Fiat money, then it can be stored, for example, on the phone. Theoretically it’s even possible to use for payments. It is easy to issue from a technological and legal point of view. But for existing cryptocurrencies — they must first be recognized as legal tender in the country”, — said the representative of the Ministry of Finance of India.

In any case, the Ministry of Finance does not intend to discuss the decision of the Reserve Bank of India earlier banned banks from dealing with crypto currencies. Moreover, officials believe that the regulator acted quite logical.

“The regulator of the banking sector took the decision within their powers. We do not believe cryptocurrencies currencies in principle. We have issued several warnings addressed to potential kriptosistem. These are the risks, is a kind of Ponzi scheme, so cryptocurrency is banned in the country”, — said the head of the Department of economic Affairs of the Ministry of Finance of India Subhash Chandra Garg.

Recall, July 5, 2018 in India came into force the decision of the Reserve Bank banned the country’s banks to service the accounts of private individuals and organizations used for cryptocurrency transactions.

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