India’s Govt Considers Allowing Crypto Tokens for Metro Cards, Airline Tickets: Report
India&rsquos government is reportedly mulling the launch of crypto tokens of its personal for economic transactions in the nation regardless of an ongoing banking ban on decentralized cryptocurrencies.
An inter-governmental committee tasked to study and propose a regulatory roadmap for the cryptocurrency sector is also examining the usability of crypto tokens in the public sector, domestic publication DNA India reports citing sources.
The committee is reportedly eyeing the use of the custom blockchain-primarily based crypto as a tokenized representation of funds rather a direct substitute to currency on its personal, with applications such as metro card tokens.
The report cites a senior official from the country&rsquos finance ministry as stating:
The committee is examining if crypto tokens can be utilised to replace intelligent cards such as metro cards in the public sector to commence with. Similarly, in the private sector, it can be employed in loyalty programs such as air miles exactly where its use is restricted to getting the next ticket and can&rsquot be converted into money.
The Inter-Ministerial Committee (IMC), first established by the Ministry of Finance in early 2017, contains India&rsquos taxation authority, India&rsquos Division of Financial Affairs (DoEA) and a quantity of other ministries alongside representatives from India&rsquos central bank and the State Bank of India, the nation&rsquos largest bank.
The committee was particularly tasked to examine the status of cryptocurrencies each domestically and internationally, study regulatory and legal frameworks adopted by other nations as effectively as examine measures to curb cash laundering fears prior to ultimately proposing a regulatory framework for the sector in the nation.
Whilst the committee deliberated over the proposal with substantial delays, India&rsquos central bank issued a circular in April 2018 that mandated all regulated financial institutions which includes banks to prohibit solutions to all cryptocurrency organizations.
“This is a difficult subject, involving technology which is changing every single now and then. That’s why it is taking some time,” DoEA secretary and head of the IMC Subash Chandra Garg told DNA, in spite of a televised June interview wherein the official stressed the committee was &ldquoin a position to wrap this up [crypto regulations] in the very first fortnight of July.&rdquo
Mumbai metro image from Shutterstock.
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Published at Tue, 14 Aug 2018 09:13:41 +0000