Economic Affairs Secretary Ajay Seth said on Monday that the government will soon finalize a consultation paper on cryptocurrencies with inputs from various stakeholders and institutions, including the World Bank and the IMF. He also underlined the need for a global response to tackle issues related to cryptocurrencies as they operate in the virtual world. The Reserve Bank of India (RBI) has on several occasions expressed its objection to such virtual currencies citing threats to macroeconomic stability.
Speaking on the sidelines of the curtain-raising event of ‘Iconic Week’ as part of Azadi Ka Amrit Mahotsav being celebrated by the Finance Ministry, Seth said that the consultation paper is quite ready.
“We have consulted not only domestic institutional stakeholders but also organizations such as the World Bank and the IMF. Therefore, we are hopeful that we will be in a position to finalize our consultation paper soon,” he added.
At the same time, he said, India has also started work on some kind of global rules.
“Countries that have banned cannot succeed unless there is a global consensus around it. There has to be a broad framework of participation. digital assetWhichever way we want to deal with those assets, there has to be a broad framework on which all economies have to live together. No country can choose any position. we need a global consensus crypto regulation,” he said.
Seth said, “If you remember, the Prime Minister has made this remark over and over again.
Expressing hope, he said, India is poised to grow among the fastest growing major economies of the world despite global challenges.
“At Nectar Kal we can overcome the present challenges as well as the challenges we face in the years to come. There are strong global adversities that have plagued the global economy,… In spite of all that, India is ready for it. It is the fastest growth of all the big countries of the world. This was the situation six months ago and this is our assessment even today.”
Seth also assured that inflation should be brought down with the help of both fiscal and monetary measures.
Asked what other measures are being taken to bring down the prices, he said, “This situation is developing and it is difficult to say what steps can be taken in future.”
He said that whatever be the existing challenges, they are being resolved in time.
Earlier this month, the government had announced a slew of measures, including a cut in excise duty on petrol and diesel prices by Rs. 8 per liter and Rs. 6 per liter respectively.
With the softening of commodity prices, he said, “We expect inflation to moderate in the coming months, and for that whatever steps were needed from the fiscal side, and RBI is also taking those measures.” ” Asked whether geopolitical tensions could affect development, he said, “Obviously things slow down when there are unfavorable conditions.” At the time of the Budget, he said, “There was an estimate that the Indian economy would grow at 8-8.5 per cent, the budget envisaged at 7.5 per cent at the time… I have not seen any rating agency talk about reducing the numbers.” This is a dynamic situation… Please understand that we are largely integrated with the global economy.” According to the Economic Survey, India’s economy is expected to grow at 8-8.5 per cent in the fiscal year beginning April 1.
The International Monetary Fund recently slashed its growth forecast to 8.2 percent which is higher than the 7.2 percent by the Reserve Bank of India.