Cryptocurrency in India has not been received very well and the government bodies have shown a repelling attitude towards the digital currency trade. But finally, there is an arrival of hope and reassurance coming in from a global financial body Financial Stability Board (FSB). The inter-governmental body counsels and makes recommendations on the world economy. It has come out in full support of the fact that it is definitely not a threat. This is nothing less than a piece of big breaking news for the beginning of a new year for the crypto enthusiasts in India who have been waiting for the legal acceptance of this new age development.
FSB constitutes of more than 20 countries of the world such as India, UK, China, and the US to name a few. The report unveiled by Reserve Bank of India (RBI), quoted FSB’s proactive evaluation of the possible implication of digital assets for financial constancy. The FSB’s report provides an insight into the assessment crucial risks involved in cryptocurrency trade like their volatility, low liquidity, operational risks, and leverage usage. Therefore, they definitely lack some of the key features of a sovereign currency.
Crypto-assets indeed do not pose any threat towards the global financial market and stability as of now. But, there is a definite requirement of vigilant monitoring with respect to the pace of market development and their intrusion in the mainstream as mentioned by the Financial Stability Board. The Modi government has not been able to arrive on a concrete decision about the role of cryptocurrency in India. Since July 2018, the financial institutions have been asked to prohibit banking relationship involving crypto trade.
According to Quartz India, the government has been studying cryptocurrency for over two years now. However, they have not been able to come out with any regulatory compliance to deal with cryptocurrency in India. It seems that while the while several other Asian countries have followed in the trend of digital currency and are even introducing it into their economy, India is still in the pre-mature stage.
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