Finance minister Nirmala Sitharaman on Monday said that there was complete harmony between her department and the Reserve Bank of India (RBI) on all matters including cryptocurrencies. She added that there is respect towards each other's domain and priorities keeping national interest in mind.
She was addressing media persons after RBI's board meeting.
“Not just on crypto, but on every other thing as well. I think there's complete harmony with which we're working, respecting each other's domain and also knowing what we've to do with each other's priorities and in the interest of the nation. There's no turfing here,” Ms Sitharaman was quoted as saying by agencies.
With RBI & Ministry, not just on crypto but on every other thing as well, I think there's complete harmony with which we're working, respecting each other's domain also knowing what we've to do with each other's priorities & in interest of the nation. There's no turfing here: FM pic.twitter.com/ub4aDmZCfU
RBI governor Shaktikanta Das on his part said that the issue of cryptocurrency was under discussion internally between the central bank and the government.
“Whatever points we have, we have discussed with the government. Beyond that I think I will not like to further elaborate,” Mr Das said.
Ms Sitharaman, while presenting the budget on February 1, had said that a digital currency will be issued by the central bank in the next fiscal, which will use the blockchain technology. The budget also proposed to amend the RBI Act to introduce the proposed central bank digital currency (CBDC), which will function simultaneously with the traditional banknotes.
Last week Mr Das had said that private cryptocurrencies were a threat to macroeconomy and financial stability, and would undermine the central bank's ability to deal with challenges on the two fronts. In a message for investors, he had said such assets have no underlying whatsoever, “not even a tulip”.
Meanwhile the finance minister reacting on LIC's draft red herring prospectus, said that there was "positive buzz in the air" about it.
She said that a big decision like this is never a "knee-jerk reaction. It is done with consciousness... And I can see after the announcement, the reception, there is a buzz in the air".
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