For the first time a former Finance Minister of India, who proposed a General ban on cryptocurrencies, discussed digital assets with industry leaders.
During the webinar on 17 July the former Minister of Finance of India Subhash Chandra Garg (Garg Chandra) discussed cryptocurrencies with industry leaders in India, among which Nishal Shetty (Nischal Shetty) Indian CEO of the cryptocurrency exchange WazirX, and Siddhartha of Sohani (Siddharth Sogani), founder of the research company Crebaco. It is reported CoinTelegraph.
In 2019 Garg, along with his Secretariat has developed a draft law which proposed to ban the cryptocurrency, and those who will be critical assets to be put in jail for 10 years and fine of 25 crore rupees (approximately us $33 million) for those who betrayed, used and kept these assets.
Thursday for the first time, Garg has discussed this issue with members of the cryptocurrency community, which has allowed the former Secretary to clarify a long-standing view that the proposed bill would completely eradicate the cryptocurrency with the Indian financial ecosystem.
Garg said that approved of the use of cryptocurrencies as controlled goods, but added that they cannot function as currency in India. According to him, cryptocurrency is a commodity, not a currency and should be adjusted from the same point of view.
Time to digitize currency, but without cryptocurrency
Sharing his thoughts on the digitization of money, Garg said that the way of perception and use of money have greatly changed over time. Today, the digitization of money and the creation of digital currency the Central Bank is part of the overall needs in providing the best financial services, he said.
He said that the government of India could digitize the rupee, and scriptactive based on the blockchain, was only one of the following methods. However, he strongly disapproved of digitization of money through cryptocurrency.
“Then, how does cryptocurrency is the blockchain technology. This high technology investment. This can never be the currency of the common man”.
Supporters of the cryptocurrency answer
Although Garg not found logical reasons for the existence and use of the cryptocurrency, he found a strong connection to the blockchain, saying that in the financial field there are a lot of promising use cases.
Nishal Shetty with WazirX stated that crypto-currencies are important to promote innovations on the blockchain. Sharing example deployment code on the Ethereum blockchain, he explained Gargu you need a developer to make a payment in Ether (ETH), which is cryptanalytic.
These payments can’t be made in Indian rupee, he said. Thus, the cryptocurrency should not be considered as a replacement of rupee, but as a form of alternative payment in places where you cannot use traditional means.
He also mentioned the importance of cryptocurrency in micropayments, loans and other financial vertical.
Thinking about the novelty of the technology, Siddharth of Sohani stated that the blockchain and cryptocurrency is a new technology and each piece of knowledge “the practical experience, not by reading books.”
Sogani concluded that the government should not ban crypto-currencies out of fear, but rather should attempt to understand the technology and help it to develop.
CoiNews earlier wrote that the major cryptocurrency Indian exchange Unocoin and WazirX restored Fiat deposits placement less than a day after the Supreme court lifted restrictions on banking services for cryptomery in the country.
The portal also CoiNews informed, three months after the Supreme court decision on the abolition of banking service ban on cryptocurrency, the Ministry of Finance of India has again proposed a ban on the cryptocurrency already at the legislative level.
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