According to an International Monetary Fund (IMF) official, cryptocurrency legislation is "definitely high on the priority list" for India. "We are attempting to develop worldwide standards for crypto-asset legislation." "I believe it is crucial for India to embrace it as well," added the IMF official.
Tobias Adrian, Financial Counselor and Director of the International Monetary Fund (IMFMonetary )'s and Financial Sectors Unit, spoke with PTI Tuesday at the early spring session of the IMF and the World Bank on India's cryptocurrency legislation.
Adrian stated that for India, regulating crypto assets is unquestionably high on the priority list.
"That is something that is done all across the world," he said. "Within the Financial Stability Board, we're attempting to develop worldwide rules for crypto assets."
I believe it is critical for India to follow suit."
As the administration has declared how to manage digital currencies, representatives from India's Ministry of Finance have allegedly been meeting with the IMF and the World Bank on cryptocurrency policy.
The IMF chief then discussed the regulation of cryptocurrency exchanges in India. "Of course, I'm aware that India has adjusted the taxation of digital currencies, which is a positive step."
On April 1, the Indian authorities began regulating bitcoin revenue at 30%, with no loss offsets or deductions allowed. Following that, cryptocurrency exchange activity fell throughout the country's platforms. A new 1% tax deducted at source (TDS) will be implemented soon.
Generally, the IMF sees India in a "quite good light," according to Adrian. "I believe there are numerous prospects for growth," he was quoted as adding (in India is coming back). There will be a recovery. There's a lot of buzz about new growth prospects, new breakthroughs... We constantly prioritise progress that is inclusive and affects everyone. However, our overall prognosis in India is pretty favourable."
The representative from the IMF also spoke about central bank digital money (CBDC). In India, the Reserve Bank of India (RBI) is aggressively developing a digital rupee, which Finance Minister Nirmala Sitharaman has stated will be launched this fiscal year.
"The digital rupee would be the virtual equivalent of our real currency, governed by the RBI," Indian Prime Minister Narendra Modi earlier noted. "The digital rupee would transform the financial technology economy," PM Modi remarked. T. Rabi Sankar, Deputy Governor of the Reserve Bank of India, stated earlier this month that the central bank will issue virtual money "in a very controlled, graded fashion, analysing effect all down the line."
In response to India's exploration of a central bank digital currency, the IMF head commented, "That might be pretty crucial for security and economic growth, and we are following India very closely." These policy developments are also welcomed by us.
