New Delhi: Bill to prohibit all personal Cryptocurrency in India, with certain exceptions to promote the underlying technology and its use, is between 26 bills to be introduced in the upcoming winter parliament session.
Serving ‘Cryptocurrency and Bill Regulation of official digital currencies, 2021’, it is one list of new bills to be introduced, considered, and passes.
CryptocurrenceLive “to create a facilitative framework for the creation of the official digital currency that will be issued by the Bank of India’s reserve,” a list of legislative business bulletins said on the website of Lok Sabha.
Parliament winter session starts from November 29.
“The bill also strives to ban all private cryptocurrency in India, however, this allows the exception to promote the underlying Cryptocurrency technology and its use,” Bulletin added.
RBI is examining the feasibility of launching a central bank’s digital currency but has not decided on a possible date to launch a pilot project.
However, Lok Sabha Bulletin did not provide other details about the Cryptocurrency and the official digital currency bill regulation, 2021.
Earlier this month, a high-level meeting organized by Prime Minister Narendra Modi held a comprehensive review of Cryptocurrency and the road to the future.
The government’s sources have said that it sees Cryptocurrency regulation “insight forward and progressive” and they have explained that markets that are not regulated for digital currencies cannot be permitted into roads for money laundering and terror financing.
During the meeting there was a strong view that efforts to mislead youth through non-transparent advertisements, promised too high, need to be stopped, the sources have shown.
Shortly after this meeting, the permanent parliamentary committee of finance met to find views from various industrial participants.
While sugging that the prohibition might not help, industrial representatives told the parliamentary committee that must be regulated by Cryptocurrency because they cannot be stopped, amid concerns over the security and protection of investors by several panel members.
Overcoming last week’s event, PM Modi also urged cooperation between world democracy to ensure cryptocurrency like Bitcoin did not “end up in the wrong hand”.
While the government and the RBI discussed laws on this issue for several months now, there has been a sharp increase in interest in cryptocurrency with several individuals, including senior citizens who invest in personal digital currencies.
India is estimated to have the largest number of Cryptocurrency investors in the world, although investment value can be smaller than in Western countries.
Reserve Bank consistently maintains the need to ban personal digital currencies.
Earlier this year, the RBI had submitted his decision to look for the ban on the instrument after expressing serious problems.
While confirming that Blockchain technology must be encouraged, the central bank questioned the purpose of Cryptocurrency to be labeled as a currency.
It is said that currencies are sovereign rights and cannot be assigned to individual entities.
There are concerns over volatility in the price regardless of the impact on the economy.
The central bank has also raised the security risk associated with the cryptocurrency, said it could cause money laundering and terror financing due to transaction anonymity.
The RBI has also designated the danger for macroeconomic management if this instrument is permitted because they will cause “serious risk” in the country’s financial system.
In 2019, the government has appointed an inter-minister panel led by Secretary of Economic Affairs Subhash Chandra Garg who has supported the Private Cryptocurrency ban.
Since then there has been an intense discussion about this problem while this sector has lobby hard to prevent a total ban.