The Indian government finally passed a cryptocurrency bill. The bill is entitled “Encryption and Supervision of Official Digital Currency in 2021”, and the bill has been considered at the current parliamentary session of Lok Sabha, the lower house of the Indian Parliament. It tried to create a framework for India’s official digital currency issued by the Reserve Bank of India (RBI), but banned all cryptocurrencies.

The Indian government will introduce a cryptocurrency bill at this Congress meeting

After nearly two years of waiting, the Indian government finally proposed a cryptocurrency bill. According to the announcement issued by Lok Sabha on January 29, the bill entitled “Encryption and Supervision of Official Digital Currency in 2021” has been deliberated at this session of Parliament. The Congressional Budget Meeting started on Friday and will end on April 8th, with adjournment from February 15th to March 8th. The alliance budget will be submitted on February 1.

The announcement lists the bills that the Indian government sent for processing during the budget meeting. One of them is a cryptocurrency bill, which is described as:

To establish a promotional framework [the] Create an official digital currency issued by the Reserve Bank of India. The bill also attempts to ban all private cryptocurrencies in India, however, it allows certain exceptions to promote the underlying technology and uses of cryptocurrencies.

The Indian Parliament will consider a bill to ban cryptocurrencies while creating a digital rupee at this session
Lok Sabha’s announcement section shows the cryptocurrency bills listed in the budget meeting for “introduction, consideration and approval.” Source: Lok Sabha’s announcement.

The Mint publication explained: “In accordance with the legislative sequence of the 17th Lob Sabha Budget Conference starting today, the government has listed a bill that prohibits the use of all private cryptocurrencies in India, such as Bitcoin, Ethereum, Ripple, etc. .. “

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This bill banning cryptocurrencies is similar to the encryption bill drafted by the Inter-Ministerial Committee (IMC) led by former Finance Minister Subhash Chandra Garg. The bill was issued in February 2019 and announced by the Ministry of Finance in July 2019. The bill proposes to ban all private cryptocurrencies and provide for the creation of a central bank digital currency (CBDC) digital rupee. Since then, Garg has resigned from the government, and the Treasury Department has remained silent on the bill.

On Monday, the Reserve Bank of India (RBI) released a booklet on the Indian payment system, acknowledging the popularity of cryptocurrencies. The Central Bank also confirmed that it is “exploring whether it is necessary to use a digital version of fiat currency, and how to operate the fiat currency if possible.” According to reports, in December last year, the Ministry of Finance was considering the possibility of Bitcoin 18% Goods and Services Tax (GST) is levied on transactions.

Parliament proposes the encryption bill for the first time, the reaction of the encryption community

Although there have been reports that the Indian government plans to ban cryptocurrencies, this is the first time that a bill to ban cryptocurrencies has been considered in Lok Sabha.

The Indian crypto community does not approve of the government’s decision. One Twitter user wrote: “This is crazy.” Another warned that the Reserve Bank of India had better not ban Bitcoin, and pointed out that “Currently, crypto billing should not be a FUD, otherwise India will lose its centralization by mistake. Dynamics and innovation in the field.”

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Nischal Shetty, CEO of Indian cryptocurrency exchange Wazirx, commented: “A large country like India should at least commit to understanding the basic terminology before submitting technology-related bills to Parliament. It seems to be a hasty move. If done wrong This may destroy a lot of the value that the public has.” He added: “We hope this is a pioneer in active encryption regulations,” he emphasized:

Merely proposing a bill does not mean it can be eliminated… Wrong or sloppy regulations will set us back ten years. The right regulations will make India leap to the forefront of this technology.

The CEO believes: “We have leaders with technical capabilities, and they will definitely question this.”

Neeraj Khandelwal, co-founder and chief technology officer of Coindcx, another cryptocurrency exchange in India, pointed out that it is estimated that more than 5 million Indians hold “a total of 10 billion US dollars in Bitcoin wealth, accounting for 2% of India’s foreign exchange reserves.” , The taxation of cryptocurrencies can bring billions of dollars in taxes to the Indian government. He reiterated: “Previous attempts to ban Bitcoin in India have been unsuccessful. The industry survived for 2 years during the Banking Ban imposed by the Reserve Bank of India. “

After Tesla CEO Elon Musk changed his Twitter profile to “#bitcoin” and tweeted: “In retrospect, this is inevitable.” Previously, Bitcoin prices soared. It was news that India banned cryptocurrency.

Do you think India will ban cryptocurrency? Let us know in the comments section below.

Picture Credits: Shutterstock, Pixabay, Wiki Commons, Government of India

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