The panel headed by Jayant Sinha, who is also the former Minister of State for Finance, will also collect inputs from academics from IIM-Ahmedabad.
Representatives from crypto exchanges, Block Chain and Crypto Assets Council (BACC), industry bodies and other stakeholders will make their submissions on crypto finance before a parliamentary panel headed by BJP leader Jayant Sinha on Monday.
This will be the first meeting on the subject to be convened by the Parliamentary Standing Committee on Finance, which has generated great interest and concerns from various quarters regarding investment potential and risks.
The panel, headed by Mr. Sinha, who is also the former Minister of State for Finance, will also collect inputs from academics from IIM-Ahmedabad.
The panel meeting to be held in the afternoon assumes significance as it comes days after Prime Minister Narendra Modi chaired a high-level meeting with officials of various ministries and RBI on the issue of cryptocurrency.
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“We have called upon stakeholders from the entire industry including operators of major exchanges, members of CII as well as academics from the Indian Institute of Management (IIM) Ahmedabad who have done a very thorough study on crypto finance,” said Mr. Sinha. PTI,
He further added that the panel has also called representatives of the India Internet and Mobile Association of India, among which BACC, an exclusive body that deals with cryptofinance players.
“We will hear from them about their thoughts on the right regulatory framework for this industry as it continues to grow and evolve,” he said.
In early March 2020, the Supreme Court struck down an RBI circular banning cryptocurrencies. Subsequently, on February 5, 2021, the central bank constituted an internal panel to suggest a model for the central bank’s digital currency.
The Reserve Bank of India had announced its intention to come up with an official digital currency, in the face of the proliferation of cryptocurrencies such as Bitcoin There are many concerns of the Central Bank regarding this.
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Private digital currencies/virtual currencies/cryptocurrencies have gained popularity over the past decade. Here, regulators and governments are skeptical about these currencies and are apprehensive about the associated risks.
It may be noted that on March 4, 2021, the Supreme Court set aside the RBI circular dated April 6, 2018, barring banks and entities regulated by it from providing services in respect of virtual currencies.
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