NEW DELHI: The government will soon finalize a consultation paper on cryptocurrencies with input from various stakeholders and institutions, including the World Bank and the IMF, Economic Affairs Secretary Ajay Seth said on Monday.
He also underscored the need for a global response to address issues regarding cryptocurrencies as they operate in the virtual world.
The Reserve Bank of India (RBI) has repeatedly expressed reservations about these virtual currencies, citing a threat to macroeconomic stability.
Speaking on the sidelines of the ‘Iconic Week’ curtain-raising event as part of Azadi Ka Amrit Mahotsav to be celebrated by the Ministry of Finance, Seth said the consultation document was quite ready.
“We consulted not only national institutional actors, but also organizations such as the World Bank and the IMF, so we hope that we will soon be able to finalize our consultation document,” he said.
Simultaneously, he said, India also started working on some sort of global regulation.
“Countries that have banned, they can’t be successful unless there’s a global consensus around this. There needs to be a broad framework for participation. Digital assets, however we want dealing with these assets, there needs to be a broad framework that all economies need to be together. No country can choose one position or the other. We need a global consensus on crypto regulation” , did he declare.
If you recall, says Seth, the Prime Minister has made this observation time and time again.
Expressing his hope, he said, India is poised to become the fastest growing economy among the world’s major economies despite global challenges.
“We can overcome the current challenges as well as the challenges that will come our way in the coming years in the Amrit Kal. There are strong global headwinds that have impacted the global economy. Despite all this, India is poised to grow the fastest of any major country in the world. That was the position six months ago and that will still be our assessment today,” he said.
Seth also assured that inflation should moderate with the help of fiscal and monetary measures.
When asked what other measures were being considered to cool prices, he replied that the situation was changing and it was difficult to say what the next steps would be.
“Whatever the current challenges are, they are being addressed in a timely manner,” he added.
Earlier this month, the government announced several measures including a reduction in excise duty on petrol and diesel prices by Rs 8 per liter and Rs 6 per liter respectively.
With commodity prices moderating, he said, “we expect inflation to slow down in the coming months, and for that, all the necessary measures on the fiscal side have been taken, and the RBI is also taking these steps.”
When asked if geopolitical tension could impact growth, he replied, “When there are headwinds, obviously things slow down.”
At the time of the budget, he said: “An estimate was that the Indian economy will grow by 8-8.5%, the budget assumed 7.5%, at that time. I did not see any agency rating talking about a lower number It’s a dynamic situation…please understand that we are quite integrated into the global economy.”
According to the economic survey, India’s economy is expected to grow by 8-8.5% in the fiscal year beginning April 1.
The International Monetary Fund recently lowered its growth forecast to 8.2%, which is higher than the Reserve Bank of India’s 7.2%.