Reports suggested that cryptocurrencies are being used by the wrong means for luring investors and funding terror activities. To get a hold over the situation, the government decided to pass a bill on cryptocurrencies which will seek a ban on the usage of these. The statement read:
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 “seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology and its uses. The bill aims to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India.”
The crypto bill along with 25 other bills, will be introduced during the Winter Session of Parliament, which is beginning on 29th November.
According to the government’s plan, a crypto ban was supposed to be effective from last year. They were willing to introduce a bill in this year’s budget, however, that wasn’t implemented. Instead, a committee with the stakeholders was formed that gave a chance to discuss further on the matter.
Moreover, RBI expressed its concerns around the bitcoin and cryptocurrencies as RBI governor, Shaktikanta Das highlighted the possible threats these could be to financial systems.
As the news spread further, Nischal Shetty CEO, Founder Wazir X, observed, “The stance of government looks similar to the last one. Will have to go through the contents of the bill. Bitcoin is a public cryptocurrency on a public blockchain.”
He further said, “This is a big moment for India… Our nation has come a long way in these 3 years! It speaks volumes about how India is determined to dominate the web 3.0 era.”
Earlier this month, Prime Minister Narendra Modi called for a meeting with the senior officials from RBI, the finance ministry, and the Securities and Exchange Board of India (SEBI) for further discussions.
The PM at The Sydney Dialogue last week said, “It is important that all democratic nations work on this (cryptocurrency) and ensure that it does not end up in wrong hands, which can spoil our youth.”
A suggestion to ban all the currencies except those issued by the state was passed by an inter-ministerial panel on cryptocurrency under the Chairmanship of Secretary (Economic Affairs).
Meanwhile, the Parliamentary Standing Committee also held discussions, analysing the pros and cons of crypto-finance to which several members expressed their opinions in favour of regulating the currency exchanges instead of an outright ban.
The Central Bank also plans on introducing an official digital currency.