NEW DELHI: The authorities is alive and privy to varied points across the cryptocurrencies and can take a thought of view on the problems, Financial Services Secretary Debasish Panda mentioned on Wednesday. Currently, regulatory our bodies like RBI and Sebi should not have any authorized framework to instantly regulate cryptocurrencies as they don’t seem to be currencies, belongings, securities or commodities issued by identifiable customers.
“The cryptocurrency, which has been debated day-in and day-out, has an underlying technology. In an interconnected economy, interconnected world, we cannot isolate ourselves.
“We should bear that in thoughts that a way or the opposite goes to get us,” he said at a virtual conference organised by Institute of Directors.
Secondly, he said there are concerns from the regulatory point of view that it does not have an underlying asset so how can it be recognised a currency.
“So, there is a dilemma right here…the federal government may be very a lot alive and privy to this complete situation of the cryptocurrency and its development and its benefits and the disadvantages, every thing,” he said.
Some experts are already engaged into looking at various issues as to how to deal with it and the government will be in a position to share details at an appropriate time, he added.
Cryptocurrencies are digital or virtual currencies in which encryption techniques are used to regulate the generation of their units and verify the transfer of funds, operating independently of a central bank.
“Nevertheless, I’d solely wish to level out at this level of time that we’re totally alive to what’s taking place world wide and the way this type of foreign money is gaining. Rather a lot international locations are additionally fastidiously considering via and a few international locations I feel have began regulating this specific situation,” he said.
Unless you regulate, he said, there are a lot of naive people who can be cheated and there could also be other fallouts for that.
Last week, Reserve Bank of India Governor Shaktikanta Das had said the apex bank has certain “main issues” over the impact cryptocurrencies may have on the financial stability in the economy and has conveyed the same to the government.
The RBI had virtually banned cryptocurrency trading in 2018 and had directed all entities regulated by the central bank to cease dealing in virtual currencies.
Speaking on the financial sector, Panda said that overall, the banking system in the country has been quite stable despite what was earlier projected by the various rating agencies and analysts.
He expressed hope that the trend would continue, and banks and financial system in the country will be stable and robust.
He also said that the interest rate is at an all-time low, which provides a great opportunity for businesses and private investments to come in.
“Infrastructure improvement is one thing which is the top-most precedence of the federal government, and we have now a big infrastructure pipeline,” he said.
The proposed development finance institution (DFI) is soon to be in place to accelerated push to infrastructure financing activities, he said.
The Union Budget 2021-22 has proposed setting up a DFI with an initial capital of Rs 20,000 crore to mobilise Rs 111 lakh crore required for funding the ambitious National Infrastructure Pipeline (NIP).
Speaking at the virtual conference, LIC Managing Director Vipin Anand said the company is at a concluding phase of new information technology (IT) project.
“With this, pace of our operation will go as excessive as 10 occasions of what it’s now. Subsequently, we’d be shifting to blockchain and different rising applied sciences… LIC can be chief so far as IT initiative for purchasers and processes are involved in subsequent 2-Three years,” he said.
Anand said LIC has 28 crore policies with a total asset of about Rs 35.5 lakh crore. LIC commands 66.4 per cent market share in the life insurance market space.