Chandrasekhar: Crypto a ‘legitimate’ case of macro-eco risk: MoS IT Chandrasekhar
NEW DELHI: Minister of State for IT and Electronics Rajeev Chandrasekhar said on Tuesday that cryptocurrency presents a “legitimate” case of macroeconomic risk and there is a need for it to be regulated.
“… there is a very legitimate case that crypto represents macroeconomic risks. It represents many other types of risks. FTX and other cases reaffirm that crypto is not business as usual and crypto is not innovation,” Chandrasekhar said while speaking at Times Network’s India Digital Fest.
The minister said that countries and central banks around the world are struggling with the problems surrounding crypto
“In India crypto is not illegal if you buy them through legitimate channels of LRS (Liberalised Remittances Scheme) which is RBI approved exemption on currency. It’s your choice to lose money or make money and the government doesn’t get into where you invest and what you don’t invest in. But we certainly have the duty to explain to the Indian citizens that you can’t exchange rupees for crypto… RBI is very clear on this… (and) we should respect their views on how they map the cryptocurrency and the crypto roadmap. They have said CBDC (central bank digital currency) is the route and I have no problem with it. That’s the best way to do it without creating any downside risk to the economy.”
Talking about the decline in funding for start-ups and the digital economy that has been noticed across the world and in India, the minister said he is not very worried as “peaks and troughs and ups and downs and business cycles are very inherent in start-ups .”
“We’re seeing a cycle that would have played out regardless … also people are getting smart about where the value lies and where the IP is. Without a doubt, Covid and over-stimulation in the US and European economies and the war between Russia and Ukraine have caused significant headwinds in risk aversion … people are much more cautious and cautious, causing value adjustments.”
Regarding online gambling, the minister said that “extensive consultations” have been concluded and that “the rules are clear”.
“They are going through a vetting process and will be notified soon. . . . they will make it difficult for any kind of effort.”
He said the government is in the process of finalizing Digital India Actas well The bill on digital protection of personal data.
Talking about India’s strength in digital and its ability to work with new technologies, the minister said the country and its entrepreneurs are present across all top geographies to define the latest trends and technologies ranging from semicon and electronic design , for electronics manufacturing, AI, blockchain and high-performance computing.
“… there is a very legitimate case that crypto represents macroeconomic risks. It represents many other types of risks. FTX and other cases reaffirm that crypto is not business as usual and crypto is not innovation,” Chandrasekhar said while speaking at Times Network’s India Digital Fest.
The minister said that countries and central banks around the world are struggling with the problems surrounding crypto
“In India crypto is not illegal if you buy them through legitimate channels of LRS (Liberalised Remittances Scheme) which is RBI approved exemption on currency. It’s your choice to lose money or make money and the government doesn’t get into where you invest and what you don’t invest in. But we certainly have the duty to explain to the Indian citizens that you can’t exchange rupees for crypto… RBI is very clear on this… (and) we should respect their views on how they map the cryptocurrency and the crypto roadmap. They have said CBDC (central bank digital currency) is the route and I have no problem with it. That’s the best way to do it without creating any downside risk to the economy.”
Talking about the decline in funding for start-ups and the digital economy that has been noticed across the world and in India, the minister said he is not very worried as “peaks and troughs and ups and downs and business cycles are very inherent in start-ups .”
“We’re seeing a cycle that would have played out regardless … also people are getting smart about where the value lies and where the IP is. Without a doubt, Covid and over-stimulation in the US and European economies and the war between Russia and Ukraine have caused significant headwinds in risk aversion … people are much more cautious and cautious, causing value adjustments.”
Regarding online gambling, the minister said that “extensive consultations” have been concluded and that “the rules are clear”.
“They are going through a vetting process and will be notified soon. . . . they will make it difficult for any kind of effort.”
He said the government is in the process of finalizing Digital India Actas well The bill on digital protection of personal data.
Talking about India’s strength in digital and its ability to work with new technologies, the minister said the country and its entrepreneurs are present across all top geographies to define the latest trends and technologies ranging from semicon and electronic design , for electronics manufacturing, AI, blockchain and high-performance computing.
