It seems that the government of India is taking into consideration rethinking its approach to crypto following the formation of a new regulatory panel.
The decision comes as a result of increased support for repealing the recommendations made by a committee led by Subhash Garg, the former finance secretary, in 2019, which asked for a blanket ban on crypto-assets claiming that they had become outdated.
“There is a view within the government that the recommendations made by the Subhash Garg are dated and a fresh look is needed at the use of cryptos rather than a total ban.”
It is speculated that the new panel will investigate the use of blockchain for technological enhancement and propose methods of regulating crypto-assets separately from fiat currencies. There is also a high chance that the panel will work with the Reserve Bank of India for the creation of the CBDC.
Rumour has it that Anurag Thakur, the Minister of State for Finance and Corporate Affair, could join the committee.