Cryptocurrency consultation paper coming soon, DEA Secy Ajay Seth says

The Ministry of Finance has almost completed its work with a planned consultation paper on cryptocurrency and will soon submit the document, said Finance Secretary Ajay Seth on Monday.

Speaking at an event, Seth also said that India was better placed than other countries to cope with the global inflationary headwind and that inflation is expected to decline in the coming months due to the measures taken by the Center, including the reduction of excise duties on petrol and diesel.

“The consultation document is quite clear. We carried out in-depth analyzes and consulted not only with national stakeholders but also with multilateral institutions such as the IMF and the World Bank. Hopefully we will be able to finish and submit it soon, ”said Seth.

He said India is also engaging with other countries for global regulation of cryptocurrency and India’s role in such actions.

A bill to regulate cryptocurrency as a marketable asset has not yet been tabled, although it was first enacted under the 2021 budget in parliament. What is clear is that private cryptocurrencies will not be allowed as legal tender and the Reserve Bank of India (RBI) is developing its own central bank digital currency (CBDC).

Finance Minister Nirmala Sitharaman clarified that the center will only present the rules to parliament after extensive discussions with local and global stakeholders and other nations. The consultation document is part of this process.

Speaking on other issues, Seth acknowledged that inflation is hurting the economies of all countries, including India. However, he pointed out that India’s fundamentals were strong and that it would still be the fastest growing among major economies in FY23. Seth added that inflationary pressures are expected to ease in the coming months.

India’s wholesale price index (WPI) -based inflation rate hit the highest level in the current 2011-12 series at 15.08% in April as commodity prices tightened.

Thus, inflation based on WPI has been double-digit for 13 consecutive months.

Retail price inflation, measured by the Consumer Price Index (CPI), reached a 95-month high in April of 7.8%, paving the way for further key interest rate hikes by the central bank.

Dear reader,

Business Standard has always strived to provide up-to-date information and comments on developments that matter to you and that have broader political and economic implications for the country and the world. Your constant encouragement and feedback on how we can improve our offerings has only strengthened our determination and commitment to these ideals. Even in these challenging times that stem from Covid-19, we remain committed to keeping you informed and up to date with credible news, authoritative opinions, and sharp comments on relevant current topics.
However, we have a request.

While we are fighting the economic consequences of the pandemic, we need your support even more so that we can continue to provide you with more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through multiple subscriptions can help us practice the journalism we are committed to.

Support quality journalism and subscribe to Business Standard.

digital editor

Leave a Comment