India's Monetary Policy Committee Member: Total Crypto Ban Is Difficult to Implement, Crypto Assets Should Be Regulated

A renowned economist who is a member of India’s Monetary Policy Committee says that a total cryptocurrency ban is difficult to implement and “would only increase illegal activities and participation in the darknet.” She believes that crypto assets should be regulated.

Monetary Policy Committee Member Says a Complete Crypto Ban Is Difficult to Implement

Ashima Goyal, a member of India’s Monetary Policy Committee, talked about cryptocurrency in an interview with PTI on Sunday. The Monetary Policy Committee (MPC) determines the policy interest rate required to achieve the inflation target.

Goyal has served on several government committees, including the Prime Minister’s Economic Advisory Council and the Reserve Bank of India (RBI) technical advisory committee for monetary policy. She is widely published in institutional and open economy macroeconomics, international finance, and governance.

Replying to a question about cryptocurrencies, she said they should be called crypto tokens instead, as they are not acceptable or adequate as currencies. In addition, she said they should be banned as legal tender, but regulated as tokens.

Goyal added, “Only large transactions, from investors who are aware of the risks, may be permitted,” elaborating:

A total ban is difficult to implement and would only increase illegal activities and participation in the darknet.

The RBI also recently said that cryptocurrencies are “prone to fraud and to extreme price volatility,” stressing that they “pose immediate risks to customer protection and anti-money laundering (AML) / combating the financing of terrorism (CFT).”

Currently, there is no law specifically for cryptocurrency in India but the Indian government is working on cryptocurrency legislation. However, a crypto bill that was listed for consideration in the winter session of parliament was not taken up. The government is now reportedly reworking the bill.