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- Cryptocurrency Ban Bill Updates | Narendra Modi government to introduce bill to ban private cryptocurrencies in India
New Delhi6 hours ago
Most of the cryptocurrencies are seeing a decline after the news of the central government tightening the noose on cryptocurrencies. This morning at 10 am bitcoin is seeing a drop of more than 17%. For cryptocurrencies, the government will introduce a bill to regulate cryptocurrencies in Parliament in the winter session beginning on November 29. The bill seeks to ban all types of private cryptocurrencies.
Most cryptocurrencies are seeing a decline after news of a bill to ban cryptocurrencies surfaced in the winter session. Price is as of 10am on 24/11.
However, the government can also give some relaxation to promote crypto currency technology. It is not yet clear which cryptocurrencies will be relaxed. At the same time, with the help of the bill, the Reserve Bank of India will get a convenient framework to issue its official digital currency.
A total of 26 bills, including the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, will be introduced in the winter session. The cryptocurrency-related bill is at number 10 in the list. There are 15 to 20 million users of cryptocurrencies in India. All these users can be affected by this bill becoming law.
In the Lok Sabha bulletin, information has been given about the introduction of the bill related to cryptocurrency in the winter session. This bill is at number 10 in the list.
No regulation on crypto yet
Currently, there is no regulation regarding cryptocurrencies in the country. Because of this, Prime Minister Narendra Modi had a meeting on cryptocurrencies with senior officials and hinted at taking stronger regulatory steps. The government believes that due to lack of regulation regarding cryptocurrencies, it is being used for terror funding and movement of black money.
Crypto Can’t Be Stopped, But Must Be Regulated
After the meeting of the PM, the first meeting of the parliamentary panel headed by BJP leader Jayant Sinha on cryptocurrency was held. The consensus reached in this meeting is that cryptocurrencies cannot be stopped, but should be regulated.
Financial stability concerns with cryptocurrencies
The statement of Reserve Bank of India (RBI) Governor Shaktikanta Das also came to the fore. Das had said at the SBI conclave, “When RBI says that cryptocurrencies have macroeconomic and financial stability concerns, this issue needs to be discussed in depth.”
How is cryptocurrency being accepted around the world?
- The response of the countries regarding this is not the same. For example, countries like India and China oppose it. In India, the Reserve Bank had banned it, but many countries including America are making favorable schemes for it. The Congress of El Salvador, Central America, passed bitcoin legislation on 8 June 2021, becoming the first country in the world to make bitcoin legal tender.
- Transactions in El Salvador were previously only done with US dollars. Now there are transactions in digital currency too. Seeing that, many South American and African countries are also considering giving legal status to bitcoin.
- Large countries such as South Korea are also working on creating legal structures to regulate cryptocurrencies and exchanges. On the other hand crypto friendly Miami, US recently organized a crypto enclave. Efforts are being made all over the world to adopt crypto currency like bitcoin. Some countries have also launched mutual funds based on bitcoin or other cryptocurrencies.
What is cryptocurrency, how does it work?
No one has control over cryptocurrencies, it is a completely decentralized system. No government or company can control this. That’s why there is instability in it. It works on blockchain technology and distributed system, which can neither be hacked nor tampered with.
What is the digital currency that RBI wants to bring? A Central Bank Digital Currency (CBDC) is a digital version of a country’s fiat currency (such as the rupee, dollar or euro). It is issued by the central bank. Also it gives a guarantee. It is one to one exchangeable as well as fiat currency. With this, the transaction is done without any intermediary or bank.
You will get the digital currency from the Reserve Bank and it will reach to whomever you pay or transfer. Will neither go to any wallet nor to bank account. Will work exactly like cash, but will be digital.
Will it be a form of cryptocurrency?
No. Cryptocurrencies have no liability, whereas digital currency, on the contrary, would be a liability of the central bank. The price of cryptocurrencies fluctuates a lot. Cryptocurrencies are mined. Blockchain technology is used for this. It is not issued by any government or any regulatory authority. In contrast, digital currency is issued by the central bank.
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