Express News Service
BENGALURU: For the first time, cryptocurrency found its way into the Economic Survey, as it highlighted the need for a common approach to regulate the crypto ecosystem.
The survey tabled in Parliament on Tuesday flagged concerns citing crypto exchange FTX collapse. Crypto assets are self-referential instruments and do not strictly pass the test of being a financial asset because they have no intrinsic cash flows attached to them, the survey said, stressing on the need for global collaboration for crypto regulations.
It also said that international fora like OECD (Organisation for Economic Co-operation and Development) and G20 are discussing a globally coordinated approach to regulate crypto assets.
Mudrex CEO and co-founder Edul Patel said, “Implementing comprehensive regulations is crucial for fostering innovation and combating financial crimes such as money laundering and fraud. India cannot regulate cryptocurrencies alone, as they are a global phenomenon. Hence, India’s call for the establishment of global regulatory standards that can adapt to future changes is a forward-thinking approach.”
Crypto investing app CoinSwitch co-founder Ashish Singhal said, “As Economic Survey puts it, there is a need for a common approach to regulating the crypto ecosystem. Our hope is India too will move in this direction and not take any regressive measures on crypto.”
The survey also said that the introduction and piloting of Central Bank Digital Currency (CBDC) will provide a significant boost to digital financial services.
“They may lay the framework for another generation of financial innovation..As of July 2022, there are 105 countries in the process of exploring CBDC, a number that covers 95% of the global GDP. Many countries have already launched the CBDC, while others are in the pilot stage,” it added.
The RBI has recently launched pilots of CBDC in both the wholesale and retail segments.
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