Secretary of Economic Affairs speaks on Cryptocurrency Ban

Secretary of Economic Affairs of India, in a recent conference, gave his opinions on the recent FBI fiasco. Subhash Chandra Garg commented on the recent decision by RBI deputy governor to disallow banks to unwind their support to companies and individuals associated with cryptocurrency.

Demonetization of cryptocurrency

RBI has recently made an announcement warning banks to disengage from cryptocurrency related companies. Also, RBI has given a window of three months for banks to withdraw their engagement with cryptocurrency related companies. As a result, the Indian cryptomarket had stumbled on a very large scale. All the major cryptocurrencies suffered a dip of more than or equal to 29-30%. All the while the international market was pretty stable without much deviation in the prices.

In the recent conference, a journalist asked the Secretary about the recent RBI’s decision to ban crypto trading. Subhash Garg gave the clarification in following words:

All the RBI related entities, whether it is banks, credit cards or whatever will not be used for making payments (for cryptocurrencies).

When asked about the investments that people have already made in cryptocurrencies, he said that they cryptos were never a currency. The 1.5 million people who have already invested in cryptocurrencies weren’t putting their money in currencies but in assets.

Journalist: In a way, isn’t it a demonetization of cryptocurrency?

Secretary: The cryptocurrencies were always demonetized. They were never the money. Somebody was mistakely treating them as currencies. 

Cryptocurrency is not dead

On a further question, whether cryptos are dead assets now, he replied that cryptocurrency is not dead yet. He said that people can still trade cryptocurrencies among themselves. They can transfer their currencies from one account to another using blockchain technology. People just cannot to cryptocurrency trading using fiat currency.

Journalist: So cryptocurrencies are dead assets now?

Secretary: No, they can still trade among themselves, that is possible. That is what the system is. But they cannot bring it in this system. They can also use cash in other means, but not the banking channels and credit cards.

We now have to see what he meant by his statement They can also use cash in other means.Whether the government is coming up with some new solutions or was he suggesting something else.

Comment down below what you feel about the Secretary’s recent statement.

Watch the full video here.


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