The suggested cryptocurrency legislation which is feared by some to ban digital currencies will likely provide an exit window to the existing crypto holders in India owning private entities in case such as move is taken.
An official source revealed to the media that the suggested law will be prospective, even though declarations of the transactions and holdings may be asked retrospectively. As per unofficial statistics, Indians are expected to own approximately US $1.5 billion which is equal to around Rs. 10,000 crores in cryptocurrencies.
According to some media sources, in the inter-ministerial meeting, an alternative to provide an exit period to 3-6 months before banning the mining, trading and issuing of cryptos was the topic of discussion. A source said that a final draft of the bill is yet to be taken to the Cabinet. On the other hand, the Reserve Bank of India has signaled that it’s “very much in the game” and is getting prepared to introduce its own digital currency.
Shaktikanta Das, the Governor of RBI said directly that the Central Bank digital currency is a work in progress. The team of RBI is working on it, procedural side and technology side… how it will be rolled out and launched.
The suggested legislation on cryptocurrencies has been on hold as the government is discussing and trying to weave in stakeholders’ views in the upcoming law. Sources hinted that the government is open to support a central bank-backed digital currency. This idea was mooted by RBI. The Reserve Bank of India and the government both seem to agree on the matter that private cryptocurrencies may do more harm than good to the currency holders and the financial system.
(This report is based on unconfirmed information as the current situation is under development).