Rama Subramaniam Gandhi, a former deputy governor of the Reserve Bank of India, said that today is the right time for India to adopt cryptocurrencies.
In the inaugural of “Hodl 2021” virtual conference organized by the Blockchain and Crypto Assets Council of the Internet and Mobile Association in India, Gandhi said that India shouldn’t miss the opportunities presented by cryptocurrencies.
At the event, he spoke about the country’s financial and crypto ecosystem and the potential of cryptocurrencies to empower India’s economy. Gandhi said that aside from being an efficient payment means, he also considers them as an asset class.
Cryptos’ fate, unclear
Cryptocurrencies are already achieving new heights of success in many countries, particularly in the area of mass adoption, but cryptos’ fate in India remains unclear.
While India isn’t an anti-crypto nation, it isn’t a crypto-friendly place either, making the digital assets’ progress in the country unclear and unpredictable.
Bills and legislation have already been filed that focus on cryptocurrencies, but Indian politicians cannot find a common ground on how to better regulate these virtual currencies.
The government has also announced that it is working on a draft bill to define cryptos as commodities so that it can legally tax them. If ever this draft bill becomes a law, India wouldn’t allow cryptocurrencies to be used for payments. Instead, these virtual assets would only be allowed to be traded and invested in as assets instead.
Crypto ban
Back in 2018, the Reserve Bank of India has banned all commercial banks from allowing their customers to make any crypto-related transactions. The ban was later overturned by the Supreme Court in February 2020.
“Cryptocurrencies should be paid for through normal payment channels. If they are not, they should be deemed mined, and capital gains should be levied. That is like voluntary disclosure,” Gandhi said.
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