Indian govt sets up high-level committee to study virtual currency

As digitisation penetrates deeper into the country's economy, the spotlight has now shifted to virtual or cryptocurrency. The Central government has set up an inter-disciplinary committee to look at the framework of virtual or digital/cryptocurrencies, in order to keep a check on any financial risk they may pose.

“The circulation of Virtual Currencies which are also known as Digital/Crypto Currencies has been a cause of concern,” said a finance ministry press release on Wednesday. The ministry said that the committee will take stock of the present status of Virtual Currencies both in India and globally, examine regulatory structures and tackle issues like consumer protection and money laundering.

It will then suggest measures on how to deal with such crypto or virtual currencies, including everything from the circulation to security and money laundering among other things. Any other topic relevant to the subject matter will also be examined.

This inter-disciplinary committee will be chaired by Special Secretary (Economic Affairs) with representatives from Department of Economic Affairs, Department of Financial Services, Department of Revenue (CBDT), Ministry of Home Affairs, Ministry of Electronics and Information Technology, the Reserve Bank of India, NITI Aayog and State Bank of India. It has been asked to submit its report within three months.

A cryptocurrency is a digital currency created through encryption techniques, of which bitcoin is the most famous. Others include litecoin, peercoin, namecoin, ether and primecoin. In India, most companies use bitcoins.