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India proposes law to ban cryptocurrencies, create official digital currency

Published 01/30/2021, 05:41 AM
Updated 01/30/2021, 10:10 PM
© Reuters. Customers talk against a backboard with signs of cryptocurrency during 2020 Taipei International Finance Expo in Taipei,

© Reuters. Customers talk against a backboard with signs of cryptocurrency during 2020 Taipei International Finance Expo in Taipei,

By Rajendra Jadhav

MUMBAI (Reuters) - India plans to introduce a law to ban private cryptocurrencies such as bitcoin and put in place a framework for an official digital currency to be issued by the central bank, according to a legislative agenda listed by the government.

The law will "create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India (RBI)," said the agenda, published on the lower house website on Friday.

The legislation, listed for debate in the current parliamentary session, seeks "to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses," the agenda said.

In mid-2019, an Indian government panel recommended banning all private cryptocurrencies, with a jail term of up to 10 years and heavy fines for anyone dealing in digital currencies.

The panel has, however, asked the government to consider the launch of an official government-backed digital currency in India, to function like bank notes, through the Reserve Bank of India.

The RBI had in April 2018 ordered financial institutions to break off all ties with individuals or businesses dealing in virtual currency such as bitcoin within three months.

However, in March 2020, India's Supreme Court allowed banks to handle cryptocurrency transactions from exchanges and traders, overturning a central bank ban had that dealt the thriving industry a major blow.

© Reuters. Customers talk against a backboard with signs of cryptocurrency during 2020 Taipei International Finance Expo in Taipei,

Governments around the world have been looking into ways to regulate cryptocurrencies but no major economy has taken the drastic step of placing a blanket ban on owning them, even though concern has been raised about the misuse of consumer data and its possible impact on the financial system.

Latest comments

India is the testing ground it always has been, the same law coming near you in western hemisphere, LOL and enjoy technology to become a better slave.
Digital currency for a country is just a debit card, they already exist. You miss the entire point of crypto decentralization. Thered be no incentive for anyone outside india to use it so they are just going to spend a ton of money creating a new form of debit cards.
India is a country which needs this kind of financial options to discourage black money earnings.
India is a country which needs this kind of financial options to discourage black money earnings.
Indian markets are much better regulated. Just like GameStop wait till someone does a long squeeze on bitcoin
Such a squeeze will be epic. Shorters will be gazillionaires.
Indian markets are much better regulated. Just like GameStop wait till someone does a long squeeze on bitcoin
Think india doesn't understand what "decentralized currency" is lol. No one uses India currency except india right now, no one is going to use a different version of their own currency simply because they want to will it into existence.
And you understand everything decentralized. But they have right to do. Ok. Using not using none of your concern. Good on you India.
ESL
lol. U nailed it.
only they will find out that it is impossible to ban Bitcoin... because Bitcoin is decentralized...
Govt can use their additional digital crypto while recognising all crypto . The only thing is transperancy and Not blocking the crypto and thus blockchain technology and DEFI like smart key etc. .
Seems like there may be more severe conflicts between the common people and controlling structures in the years to come. Chaos is in past was ever present, but in most recent years the scale and magnitude of cyber movements is going exponential. Bumpy ride head.
what an epic fail for india. better create Biryani sell it world wide.. LOL
Mr ******James ..don't worry that Indian biryani will also be pushed into your ***with red hot 🌶️.. respect other to get respect in return.
  yeah you bet.. I might ****in your place (toilet capital of the world) =))
 INDIAN ARE SO DEFENSIVE.... What's wrong with you.. Indians are selling biryani everywhere.. Whenever there is Indian in any country there is A BIRYANI.. Please take a bath first =))
The whole concept is to not rely on a centralized body it beats the purpose of block chain all together
If their ‘digital currency’ use crypto, Who jail the indian gov?
It won't be that bad. People in India know how to use a VPN
Reuters is #. Digital currency is not always crypto. A gov crypto currency is same as issuing their currency using crypto technology.
sounds cute
If this happens then in a few years every large nation will do the same and crypto will tank.
Jailing people for using crypto? How dystopian can you get?
Suppose their ‘digital currency’ is not using the crypto tech. Otherwise they violate their own law.
Sounds like a fancy fiat currency.
The end of bitcoin is starting.
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