‘Cryptocurrency’ this name was an alien concept two years ago, however this new form of digital currency is currently booming in the world of currency and digital monetisation. An interesting fact is that even though India has not regulated the use of cryptocurrency or authorised it, our country has the highest number of cryptocurrency users and maximum types of cryptocurrencies. owing to the fact that more and more youths are falling into the trap of fake currencies, Indian govt along with the reserve bank of India will be releasing a regulatory bill for cryptocurrency use in India in the upcoming winter session of Parliament which is primarily focussing on the complete ban of crypto money in the country.
What Is This New Bill All About?
India is set to introduce a bill to ban private cryptocurrencies after the government announced that it will introducing a new financial regulation bill. The bill that “seeks to prohibit all private cryptocurrencies in India” is among 26 pieces of legislation planned to be brought to Parliament in the session beginning next week, according to a Lok Sabha release. India at present has no regulation for cryptocurrencies, a set of decentralised digital currencies such as Bitcoin, Dogecoin and Ethereum that are not regulated by any banking regulator. It is to be noted that the cryptocurrency bill is listed at a time when the level of interest in the subject is very high.
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021′, it is among the list of new bills for introduction, consideration and passing. The Bill will create a facilitative framework for 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.
PM Warns Youths Falling Into Crypto Traps
Addressing an event last week, PM Modi had also urged cooperation between the world’s democracies to ensure cryptocurrencies like Bitcoin do not “end up in the wrong hands”. Nations should recognise national rights and at the same time promote trade, investment and larger public good. Take crypto-currency or bitcoin for example. It is important that all democratic nations work together on this and ensure it does not end up in wrong hands, which can spoil our youth,” PM Modi added in his speech.
The Reserve Bank of India has on several occasions highlighted that it feels cryptocurrencies like BitCoin, Ethereum and Dogecoin among many others pose a risk to financial stability and also questioned its claims of market value while asking investors to not get “lured” by the promises of returns on cryptocurrencies.
