A new Indian government report has put cryptocurrency in a positive light, viewing the mechanisms surrounding it, including initial coin offerings, as “revolutionizing the global fintech landscape.” The report also discusses the regulation of coins and tokens.
Steering Committee’s Report
The Indian Ministry of Finance announced Monday that the Steering Committee on Fintech-Related Issues has submitted its final report to the finance minister. The committee was constituted by the Department of Economic Affairs (DEA) under the chairmanship of Subhash Chandra Garg who was the DEA Secretary at the time. He has since been reassigned to the Power Ministry. The 150-page report includes a section on digital currencies and tokens.
The Steering Committee submitting its report to the finance minister (center) on Sept. 2.
The committee described in its 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,” elaborating:
The mechanisms surrounding cryptocurrencies, particularly the blockchain and initial coin offerings (ICOs), are revolutionizing the global fintech landscape.
The report details how ICOs work and emphasizes that token issuance “has emerged as an innovative way of capital raising by fintech businesses,” citing that 790 ICOs had been issued as of Sept. 25, 2018, raising a total of $20 billion. This year, the total amount of funds raised globally in ICOs so far is over $346 million, according to token sale tracking website ICOdata.
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,