The report of a committee that will take stock of the present status of virtual currencies both in India and globally may lead to a boom in the Bitcoin price in the country. The paper is to be released in July.
In it, the Inter-Disciplinary Committee within India’s Ministry of Finance seeks to examine the existing global regulatory and legal structures governing virtual currencies and suggest measures for dealing with them, particularly as they relate to consumer protection, money laundering, etc.
The committee, chaired by the Special Secretary for Economic Affairs, comprises of representatives from several financial agencies and institutions including the Reserve Bank of India, State Bank of India, Department of Economic Affairs, Department of Financial Services and the Ministry of Electronics and Information Technology.
The CEO of Coinsecure, Mohit Kalra, comments:
"Finally, something positive for the industry. Authorities are now taking this technology seriously. We have been trying to get their attention for years now. I am glad it's all happening at the right time. At Coinsecure, we are seeing a massive increase in the number of users and volumes. We are positive with what will happen in these coming three months."
Boom in three months?
An early Bitcoiner from India, Vivek, also known as Vivekomon, noted in a chat with Cointelegraph that the next three months indicates a boom for Bitcoin price. He says:
“Yes! India is already behind. I think it's the perfect timing especially with UPI and the cashless drive. It's a good move. Bitcoin is growing globally and the government of India is finally working on regulatory frameworks which will help Bitcoin as a new technology to grow further in India and not be left out. Hopefully, it will be somewhat similar to what we are seeing in Japan and the rest of world. Hoping for a boom in three months or sooner! Sure thing!”
A joint statement by the Digital Assets and Blockchain Foundation of India, which comprises of Bitcoin exchanges, reads:
“Digital India is the dream of our current government. By setting up a high-level committee to study and give suggestion on virtual currency regulations, the government has again shown their keenness to study, understand and take well-thought decisions.”
“As mentioned in the press release by the government, they are going to study regulations rolled out by other countries. This will be really helpful as experts from world economic forum and senior members of world monetary policy have contributed in drafting regulations there.”
Looking at it from the Brazil, Russia, India, China and South Africa - BRICS countries - arrangement, which brings together these five major emerging economies that make up 43 percent of the world population, 30 percent of the world GDP and a 17 percent share in world trade, there is every indication that the committee will force India to recognize the legitimacy of Bitcoin as the most used digital currency in the world by the time its report is out in three months. If that happens, it will follow the order of China and Russia which have both shown growing interest in Bitcoin. Moreover, the three constitute the most powerful of the arrangement.