India Proposes New Law To Shut Down Cryptocurrencies And Plans To Launch Government-Backed Digital Currency

According to a legislative agenda listed by the government, India plans to ban  Bitcoin and other private cryptocurrencies, and give a place for the framework as an official digital currency that will be issued by the central bank.

As per the agenda published on the lower house website on Friday, the imposed law will “create a facilitative framework for an official digital currency to be issued by the Reserve Bank of India (RBI)”. However, the agenda also states that “there will be certain exceptions to promote the underlying technology [block chain]  of cryptocurrencies and its uses.”

The Indian government seems to be forcing and shutting things related to bitcoin and other forms of cryptocurrencies that would regulate the country’s economy. Earlier in April 2018, the central bank of India (RBI)  warned the individuals and organizations that attached ties to Cryptocurrency and other virtual currency to cut off their ties.

Also later that, in Mid-2019, one of an Indian Government panel recommended banning all private cryptocurrencies. Anyone’s against it and dealing with it would be jailed up to 10 years and a heavy fine.

Today most of the business that was involved in the regulation of Cryptocurrency is either completely shut down, or they have shifted their course of business in other sectors.

However, the panel in return has proposed the government to consider the launch of an official government-backed digital currency in India that will function as the banknotes, through the Reserve Bank of India.

Now Government has implemented the ban on digital cryptocurrencies now and then, in March 2020, the Supreme court had given a chance to the bank, to allow trading between a cryptocurrency exchange and traders, the industry that had dealt a massive blown back in 2018 when central bank warned all the industry and individuals to ban the service related to a cryptocurrency exchange and trading. 

In between the heated argument of cryptocurrency exchange, trading firm owners, and the government, several firm owners filed a lawsuit in the Supreme Court. Although the nation’s supreme court listened to them and ruled in their favor, the nation didn’t change anything about its curriculum last year. 

Sumit Gupta, co-founder, and chief executive of  CoinDCX, an Indian-based cryptocurrency exchange said, “Since the government is considering introducing the bill during this session of Parliament,  we are sure the Government will definitely listen to all the stakeholders before taking any decision.”

Today, most governments worldwide are putting their thoughts on how they can improve the ways to regulate cryptocurrencies in their nation. However, no country with large democracy such as India has placed the blanket on a ban of owning them.

Image: Pixabay

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