The Cryptocurrency Regulation Bill is unlikely to be introduced in the budget session; know why

New Delhi: According to news reports, the government is unlikely to introduce the much-awaited cryptocurrency bill in the upcoming budget session of the Parliament.

The Center wants to discuss further on building a consensus on regulatory guidelines as the bill is still not fully prepared.

The central government also wants to wait for the launch of a centrally controlled digital token by the Reserve Bank of India (RBI), which is expected to happen in a few months.

The central bank said in July last year that it was working towards its own digital currency, the Central Bank Digital Currency (CBDC). CBDC refers to the virtual form of a fiat currency. It is a legal tender issued in a digital format by the central bank of a country.

The RBI has already expressed its concerns on cryptocurrencies from the ‘view of macroeconomic and financial stability’.

According to reports, another reason for the delay could be the lack of consensus on the taxation framework for digital currencies.

Recently, Prime Minister Narendra Modi wanted a global discussion on crypto regulations, which he suggested in his address at the World Economic Forum (WEF). Speaking at the WEF’s virtual summit on Monday, Modi had called for synchronized global action to regulate cryptocurrencies.

The government was to introduce a bill on regulating private cryptocurrencies in the winter session of Parliament. However, the bill was not introduced as the government had not finalized the details of its legislation.

The budget session of Parliament will begin on January 31 and end on April 8. The first part of the session will end on February 11. After a one-month break, the second part of the session will begin on March 14 and end on April. 8.

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