New Delhi: All those speculating about banning cryptocurrencies in India may come in handy as the government is set to introduce a bill in the upcoming winter session of Parliament that, if passed, would ban only ‘private’ digital currencies.
According to a PTI report, “The bill seeks to ban all private cryptocurrencies in India, however, it allows certain exceptions to promote cryptocurrencies and the technology underlying its use.”
The bill, if passed, will create guidelines for regulating cryptocurrencies in India. The bill aims to ban crypto coins, providing a framework for the creation of an official digital currency to be issued by the Reserve Bank of India (RBI).
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Investors trading in Bitcoin, Ethereum, and the like may not be concerned as these are public blockchain-based cryptocurrencies, which offer a degree of anonymity, but are completely different from what is known as the private cryptocurrency which is Monero, May refer to Dash and others. your kind.
What is the difference between ‘public’ and ‘private’ cryptocurrencies?
Even as the definition of a generally ‘private’ cryptocurrency is not yet clearly stated by the government, it is expected that bitcoin, ethereum and other crypto tokens are likely to be banned. No because they are based on public blockchain network. , which means that transactions made using these networks can be traced, while still providing a degree of anonymity to users.
On the other hand, private cryptocurrencies can be referred to Monero, Dash and others, although built on public blockchains, hide transaction information while providing privacy to users. Monero gives privacy and is therefore considered a private token.
Is a complete ban possible?
Cryptocurrency experts agree that since cryptocurrencies lack any inherent value or liquidity, it may prove difficult to ban tokens, which can also be called an asset, a commodity, a currency or a security. . According to experts, millions of people around the world could theoretically hold currency, which are basically pieces of code that cannot be ‘banned’ and also agreed to use it as a medium of exchange. which will lend it value.
Analysts argue that transferring cryptocurrencies from one wallet to another is not necessarily much different from sharing files from one computer to another. Therefore, a regulatory ban cannot take away people’s ability to send cryptocurrency to each other.
According to sources in the news agency Bloomberg, the law could set a minimum amount for investment in digital currency, banning their use as fiat currency.
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