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Minister of state for IT and electronics Rajeev Chandrasekhar on Tuesday said that cryptocurrency presents a ‘legitimate’ case of macroeconomic risks, and there is a need for it to be regulated, according to a TOI report.
While speaking at the Times Network’s India Digital Fest, Chandrasekhar reportedly said that, “It is a very legit case that crypto represents macroeconomic risks. It represents many other types of risks. FTX and other cases reaffirm that crypto is not business as usual and crypto is not innovation. In India, crypto is not illegal if you buy them through legitimate channels of LRS (Liberalised Remittances Scheme) which are RBI approved dispensation on foreign exchange. It is your choice to lose money or make money, and the government does not get in the business of where you invest in and what you invest in. But we certainly have the obligation to explain to the Indian citizens that you can’t exchange rupee for crypto.”
The minister further said that, “RBI is very clear on this and we should respect their views on how they chart out the crypto course and crypto roadmap. They have said CBDC (central bank digital currency) is the route, and I have no problem with that. It is the best way to do that without creating any downside risk to the economy.”
As per the report, Chandrasekhar also mentioned about the slowdown in the funding of startups and digital economy and said that he is not very concerned as ‘peaks and troughs and ups and downs and business cycles are very inherent in the nature of startups.’
“We are seeing a cycle that would’ve played anyway… also people are getting smart about where value lies and where IP is. Certainly Covid and over stimulus in US and European economies and Russia-Ukraine war have caused some significant headwinds in risk aversion… people are a lot more careful and prudent which is causing valuation corrections,” the minister added as per the report.
Furthermore, highlighting about the strength of India in digital and its capability to work on new technologies, the minister said that the country and its entrepreneurs are present across all top geographies in defining the latest trends and technologies, ranging from semicon and electronic design, to electronics manufacturing, AI, blockchain, and high-performance computing, added the report.