The Budget session of Parliament will consider a bill that bans all private cryptocurrencies such as bitcoin, ether, ripple and others.
In place, It will provides an official digital currency to be issued by the RBI. until now Cryptocurrency is neither banned nor legalised in India.
An RBI booklet on payment systems issued on 25th Jan also showed that the central bank is exploring whether to issue a digital version of the rupee.
Introduction of digital currency
The Regulation of Official Digital Currency Bill, 2021 is likely to be introduced in the Budget Session of the Parliament, a Lok Sabha bulletin has said.
Lok Sabha Bulletin
“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.”
Start and Stop
In 2018, RBI decided to ban the use of banking channels to buy or sell cryptocurrencies, as it was concerned over its use for terror financing, money laundering and other outlawed activities.Indian investors’ interest in Bitcoin and other cryptocurrencies revived after the Supreme Court in March 2020 lifted the RBI ban, giving cryptocurrencies a second chance in India.
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