India to ban Private Cryptocurrency: The financial budget of the fiscal year 2021-2022 is quite interesting and has included a lot of new ideas to strengthen the economic structure of the country.
The cryptocurrencies which already had a bad impression amongst the general public now have no fate. The two main announcements pertaining to Blockchain or the cryptocurrencies made were
- The “Cryptocurrency and Regulation of Official Digital Currency Bill” moves “to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India.”
- Additionally, “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.”
Present Indian government plans to introduce a bill in the Lok Sabha(country’s lower house) that would prohibit the use of private cryptocurrencies such as bitcoin, Etherium, meme-based DogeCoin and create a national cryptocurrency of the country backed by Reserve bank of India(RBI).
India to ban Private Cryptocurrency, The so-called “Cryptocurrency and Regulation of Official Digital Currency Bill” moves “to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India.”
Bitcoin’s value jumped more than 20% to $38,566 on Friday after Elon Musk changed his personal Twitter bio to #bitcoin.
This is not the first time Indian lawmakers have taken such a strong position on cryptocurrencies. In 2018, an Indian government panel recommended banning all private cryptocurrencies and proposed up to 10 years of jail time for offenders.
That same year, India’s then-finance minister Arun Jaitley said: “The government does not recognize cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these crypto-assets in financing illegitimate activities or as part of the payment system.”
India’s monetary policy regulator temporarily banned crypto transactions after a string of fraudulent activity in 2018, but the policy was later overturned by India’s Supreme Court in March 2020.
However, there are significant differences between national digital currencies and private cryptocurrencies such as bitcoin. Cryptocurrencies such as bitcoin are decentralized, while national digital currencies are typically centralized.