‘Govt lists ‘The cryptocurrency and Regulation of the Official Digital Currency Bill 2021’ for Winter session
India is looking to bar all but a few private cryptocurrencies when it introduces a cryptocurrency and regulation bill in the winter session of the parliament. According to the legislative agenda for the winter session, the government will allow only certain cryptocurrencies to promote the underlying technology and its uses.
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 had been originally listed for discussion and passage in the Budget session of the Parliament earlier this year.
The much-awaited bill purports to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India. “The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses,” the government said.
The listing of the cryptocurrency bill comes on the backdrop of multiple meetings between the industry and the government to provide a framework for the use of cryptocurrency in India.
India has around 1.5 crore cryptocurrency users with a total asset value of more than $6 billion, according to industry estimates.
Recently, Prime Minister Narendra Modi said that Bitcoin is a threat to younger generations. “It is important that all democratic nations work together on this and ensure it does not end up in the wrong hands, which can spoil our youths,” the prime minister had said.
The PM’s comments came on the back of the first meeting between the industry and the government on digital currency.
The Reserve Bank of India has consistently raised concerns over cryptocurrencies and suggested that private digital currency pose a risk to the financial stability of the country.
Cryptocurrencies have become ubiquitous globally after a breathtaking rally over the past 20 months has seen the market capitalization of cryptocurrencies grow from less than $500 billion to close to $2.5 trillion.
Bitcoin, the oldest and largest cryptocurrency, has seen its value rise more than 10 times from the bottom of the crash in March 2020.
