Replying to a query in the Rajya Sabha last week, Finance Minister Nirmala Sitharaman said, “The Government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate the use of these crypto-assets in financing illegitimate activities or as part of the payment system.”
However, the Finance Minister said that the Government would explore the use of blockchain technology proactively for ushering in a digital economy. She said that a High-Level Inter-Ministerial Committee (IMC) has recommended that all private cryptocurrencies be prohibited in India, except any cryptocurrency issued by the State. “The Government would take a decision on the recommendations of the IMC and the legislative proposal, if any, would be introduced in the Parliament following the due process,” Sitharaman said.
Notwithstanding the legal status of crypto, or virtual currencies, individual investors across the country are excited about its prospects. To give them a clear picture, we talked to some experts for insights on risks, safety, legal status, and the expected future of cryptocurrency in India.