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Minister of State for IT and Electronics Rajeev Chandrasekhar said on Tuesday that the cryptocurrency poses a “legitimate” case of macroeconomic risk and needs to be regulated, according to a TOI report.
During his speech at the Times Network’s India Digital Fest, Chandrasekhar reportedly said, “It’s a very legitimate case for crypto to pose macroeconomic risks. It poses many other types of risks. FTX and other cases confirm once again that crypto is not business as usual and crypto does not represent innovation. In India, crypto is not illegal if you buy it through legitimate LRS (Liberalised Remittances Scheme) channels , which is an RBI-approved foreign exchange exemption. It’s your choice to lose money or make money, and the government doesn’t concern itself with where and what you invest in. But we certainly have a duty to explain to Indian citizens that you cannot exchange rupees for crypto.”
The minister further said, “RBI is very clear on this and we should respect their views on how they set the crypto course and crypto roadmap. They said CBDC (central bank digital currency) is the way, and I have no problem with that. It’s the best way to do that without creating downside risk to the economy.
According to the report, Chandrasekhar also mentioned the slowdown in startup funding and the digital economy, saying he wasn’t very concerned as “ebbs and flows, ups and downs and business cycles are very inherent in the nature of startups.”
“We’re seeing a cycle that would have played out anyway…also people are getting smart about where value is and where IP is. Certainly Covid and excessive stimulus in the US and European economies and the Russia-Ukraine war have created some significant headwinds in risk aversion…people are much more cautious and prudent, leading to valuation revisions,” the minister added, according to the report .
In addition, the minister stressed India’s strength in digital and its ability to work on new technologies, saying that the country and its entrepreneurs are present in all major regions to define the latest trends and technologies ranging from semiconductor and electronics design to rich electronics manufacturing, AI, blockchain and high-performance computing, the report added.
