Back in April, India’s central bank banned the use of cryptocurrencies, a move challenged but ultimately held up by the Supreme Court. The ban went into effect last month.
Now comes a report, from the publication DNAIndia, that the government may be considering other ways to allow use of cryptocurrency after all.
A committee set up by the finance ministry is studying the possibility of using various crypto assets, including cryptocurrency, for different things not related to payments, according to the report.
“The committee is examining if crypto tokens can be used to replace smart cards such as metro cards in the public sector to start with. Similarly, in the private sector, it can be used in loyalty programs such as air miles where its use is limited to buying the next ticket and can’t be converted into money,” an unnamed senior official in the ministry told DNAIndia.
But what about the ban? While “the currency is totally banned, the committee is discussing its other usage and how it can be mainstreamed in India,” according to Department of Economic Affairs Secretary Subhash Chandra Garg, who is heading the committee. Garg thinks blockchain has “promise” but said his committee is not going to allow cryptocurrency to be used in any way that violates the current ban. Read more here.