The government has come up with a new crypto bill to be introduced during the winter session in the parliament, namely the Cryptocurrency and Regulation of Official Digital Currency Bill. According to media speculation, the new bill will “forbid the use of all private cryptocurrency” but will provide some leverage on certain cryptocurrencies to promote the blockchain technology and its vast uses.
The tender bill gives a task work to the Reserve Bank of India (RBI) to come up with an official and regularized digital currency. However, the bill is not bringing smiles to the face of the currently unregulated markets that still want to see proper regulations of digital platforms. The RBI is supporting and in favor of the ban on cryptocurrency, urging that such digital mode of payment can be used for illegal purposes in the country. Also, it will make a hurdle to the central bank’s capability to manage inflation, foreign exchange, and the growth of the entire economy. It does not see any problem in using digital technology as an asset, for managing the logistics supply and chains or to maintain land records, but is completely against the use of it as a financial instrument or currency exchange.
Prime Minister Narendra Modi is going to hold consultations and calls for global cooperation and suggestions on this issue. China has recently banned all cryptocurrencies. El Salvador is the only country to permit its official use, and Japan has allowed it as legal tender.
Government is yet to finalize the bill which will be introduced during the first week of the winter session that starts from Monday. Everyone is anxious about the bill and eagerly waiting for the guidelines from the government seeking the future of cryptocurrency.
The Government has also appointed a committee led by SC Garg regarding the same. Also, the economic affairs secretary is said to have submitted its recommendation urging a ban on cryptocurrency, and accordingly the government had planned to introduce legislation during the Budget session.