There will be a ban on cryptocurrencies like bitcoin, the government is preparing to bring its digital currency
Bitcoin is gaining popularity all over the world in the form of digital currency i.e. Cryptocurrency. But the central government is going to ban bitcoin and other cryptocurrencies in the country. In the budget session, a bill related to the ban on cryptocurrency has been listed on the floor of the Parliament, that is, the government will pass this bill in this session and ban bitcoin forever. At the same time, the government is also preparing to bring digital currency of rupees.
In the budget session commencing on Friday, the central government has listed a bill to ban all private cryptocurrencies like Bitcoin, Ether, Ripple and others in India. The bill also provides for the creation of a legislative framework on the official digital currency. That is, the government is also making legal way to bring its own cryptocurrency. Earlier, on January 25, an RBI booklet mentioned the digital version of the rupee. RBI is trying to find out what is the benefit of the digital edition of rupee and how useful it is.
The central bank’s booklet states that private digital currencies such as bitcoin have gained popularity in recent years. Regulators and governments in India have suspected these currencies and are apprehensive about the risks posed by it. Nevertheless, the RBI is exploring their potential. It is also mentioned in the note that if there is a need for a digital version of the currency in the country then how can it be operationalized? Significantly, the use of bank channels for payments related to cryptocurrency payments issued in 2018 was banned by the RBI. Subsequently, in March 2020, the Supreme Court questioned the regulation of cryptocurrency in India.
The bill has been prepared even two years ago
A government bill on cryptocurrency in 2019 allegedly sought to ban cryptocurrency and criminalize its use in India. However, it was not introduced in the Parliament. The last one year has seen a surge in the number and trading volume of cryptocurrency investors in India. Cryptocurrency exchanges such as CoinDCX and Coinswitch Kuber have also raised funds. Now, this new bill could put an end to the nascent cryptocurrency industry in the country. A detailed draft of the new bill has not yet been released in the public domain. Therefore, there is no official information available as of now.
