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.