13 JUN,2022 | MEDC
Passing the currency test: India’s Chief Economic Advisor said that cryptocurrencies have yet to pass the test of becoming fiat currency in our economy. Their regulation is also proving to be notoriously difficult. Cryptocurrencies do not satisfy basic financial requirements of fiat money, such as having a store value, widespread acceptability and a unit of account. Policymakers need to tread carefully on the crypto issue. In this regard, the government is also seeking to soon bring clarity on the applicability of GST to crypto assets. Obviously, global standards will need to be kept in mind, otherwise financial capital will invariably find a way of going to those places where it gets the best returns. The time has come to take a stand on this important issue, which could either reinforce or threaten the stability of our financial system.
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