Indian Finance Minister Nirmala Sitharaman says the government would allow a “window” for experiments with cryptocurrencies, according to Decrypt. Sitharaman expects the cabinet bill on cryptocurrencies to get ready and pass soon amid cries of a total ban on digital assets.
Sitharaman points out that while the Reserve Bank of India could have taken its own official decision on cryptocurrencies, they would not be “shutting off all options.”
On Monday, investors grew concerned as India’s government said a new law would ban the possession or usage of cryptocurrencies.
Indian officials said the use of blockchain technology would be promoted in the country, but the use of ‘private crypto-assets” such as bitcoin and ethereum would be stamped out.
The conflicting remarks of government officials and finance chief send mixed signals to bitcoin investors.
The RBI is proposing its own digital stablecoin, citing financial instability as a reason for the current proposed ban on cryptocurrencies.
In 2018, the RBI banned cryptocurrencies, which was overturned by the Supreme Court in May 2020.
Despite the proposed changes, Indian crypto investors are undeterred as trading volumes averaged nearly $100 million at WazirX, the country’s biggest crypto exchange.
Major cryptocurrencies are currently declining. BTCUSD is down 4.72%, ETHUSD is down 4.41%