India’s Chief Economic Advisor, V. Anantha Nageswaran, has called on regulators to encourage innovation within the cryptocurrency sector while ensuring transparency and accountability.
Speaking at the Global Economic Policy Forum 2024, Nageswaran highlighted the importance of regulatory frameworks that support advancements in emerging technologies, such as Bitcoin and other cryptocurrencies, rather than hinder them.
“Regulators must not stand in the way of so-called innovations in crypto and Bitcoin,”
Nageswaran stated, calling for a balance between innovation and societal needs. He flagged financial illiteracy as a persistent challenge in India and globally, stressing that regulatory criteria should encourage progress, not obstruct.
Nageswaran emphasized the importance of transparency in regulatory practices, advocating for clear communication aligned with societal goals. He called for regulators to apply social cost-benefit principles to their actions, similar to what they expect from financial innovations. By doing so and acknowledging the limits of their powers, he argued that regulators could support the responsible evolution of the cryptocurrency sector while protecting public interests.
Amid these discussions, India is reportedly considering a ban on private cryptocurrencies like Bitcoin and Ether, focusing instead on promoting the adoption of the Digital Rupee, the country’s Central Bank Digital Currency (CBDC). According to the Hindustan Times, government officials have consulted with key institutions and regulators about the risks of private cryptocurrencies, including stablecoins. Their assessments suggest that the potential dangers of these digital assets outweigh their benefits, leading to deliberations about a regulatory crackdown.
Meanwhile, Reserve Bank of India (RBI) Governor Shaktikanta Das continues to champion the Digital Rupee, the nation’s Central Bank Digital Currency (CBDC), as a secure alternative to cryptocurrencies like Bitcoin and Ethereum. Speaking at the Central Banking at Crossroads conference, Das highlighted the Digital Rupee’s potential to modernize international money transfers, reducing costs and processing times—particularly beneficial for developing nations like India.
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