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Government lists bill to ban Bitcoin in INDIA

By : Profectus Magazine   /   27 Dec 2021  /   Finance /   Cryptocurrency

An RBI booklet on payment systems issued on 25th Jan also showed that the central bank is exploring whether to issue a digital version of the rupee

Budget session of 17th Lok Sabha that commenced today, the Government has listed a bill providing for the banning of all private cryptocurrencies in India such as Bitcoin, Ethereum, Ripple XRP and others.


The bill also provides for the creation of a legislative framework on an official digital currency. An RBI booklet on payment systems issued on 25th Jan also showed that the central bank is exploring options to issue a digital version of the Rupee.

“Private digital currencies have gained popularity in recent years. In India, the regulators and governments have been sceptical about these currencies and are apprehensive aboutthe associated risks. Nevertheless, RBI is exploring the options as to whether there is a need for a digital version of fiat currency and, in case there is, how to operationalize it, – the central bank booklet said”

A previous RBI ban on the use of bank channels for payments associated with cryptocurrency issued in 2018 was overturned by the Supreme Court in March 2020 creating a space in the regulation of cryptocurrency in India.

An earlier government bill on cryptocurrency in 2019 reportedly sought to ban cryptocurrency and criminalize its possession in India. However it was not introduced in Parliament. A description of the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 in the order of business said that certain exceptions to promote the underlying technology of cryptocurrency and its uses would be allowed. The past year has seen a surge in the number of cryptocurrency investors in India and in trading volumes. Cryptocurrency exchanges such as WazirX and Zebpay are by far top Crypto exchanges in India and are gaining the number of Traders (Users) everyday. The bill may spark an end to the nascent cryptocurrency industry in the country. The detailed text of the bill has not been released in the public domain so far.

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