The Finance Ministry has announced that the committee which was constituted by the Department of Economic Affairs (DEA) has submitted its report to Finance Minister Nirmala Sitharaman in which it stated that use of digital tokens resolves the issue of multiple currencies.
The committee was formed under the chairmanship of the then DEA secretary Subhash Chandra Garg. The report constitutes a section on the digital currencies and tokens.
The committee mentioned in the report that the “Use of digital tokens resolves the issue of multiple currencies, improves liquidity and capital compliance costs, allows for micro-payments and expedites the payment process, which further eliminates liquidity risks.”
“The mechanisms surrounding cryptocurrencies, particularly the blockchain and initial coin offerings (ICOs), are revolutionising the global FinTech landscape”, the report added.
The report submitted by the committee also highlighted the way Initial Coin Offerings (ICOs) works and how the token issuance is emerging as an innovative way for businesses to raise capital.
They supported it with the token sale tracking website ICOdata, which stated that 790 ICOs has been issued as on September 25, 2018, which has raised a total of USD 20 billion. In 2019 so far, the total amount of funds raised globally in ICOs so far is over USD 346 million.
Commenting on the data Garg described that, “The mandate of this committee was to take stock of developments in the FinTech space globally and in India, study the regulatory climate in various geographies, identify application areas and use cases in governance and financial services, and suggest institutional regulatory upgrades enabling FinTech innovations.”