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Indian government to completely ban private crypto and RBI will issue new crypto instead!

New updates on the cryptocurrency bill in India are here.

Much to the Indian crypto investors displeasure, the Indian government will introduce a new bill on cryptocurrency in the latest winter session of the parliament.

This bill seeks to create a new framework for the creation of official digital currency which will be issued by RBI but here is the main thing which has all the Indian crypto investor worried.

Government is looking to ban private crypto

The bill, which is titled “the cryptocurrency and regulation of digital currency, 2021” will be up in the winter session of the parliament and will be looked to pass in the same session.

This bill comes at a high time when the Indian users looked to overtake the number of crypto holders in our country, which is growing at a super high rate.

The current situation, and the future…

As if it’s currently, India has no regulation for cryptocurrencies. A set of decentralized digital currencies such as Bitcoin doors coin and lithium are not regulated by any bank at the moment. The government seeks to introduce a bill which might highly limit the amount of crypto users or the number of new people getting into the crypto scene.

This bill seeks to prohibit all private cryptocurrencies in India, however, it allows some certain exceptions to promote the underlying technology of cryptocurrency and its uses.

Indian prime minister Narendra Modi spoke out against cryptocurrency at the international stage.

The prime minister of India, Narendra Modi spoke in an event last week between the worlds a democracy to ensure the cryptocurrencies like Bitcoin do not end up in the wrong hands.

Nation should recognise National rights and at the same time promote trade, investment and larger public good.

Take cryptocurrency or Bitcoin for example, it is important that all democratic Nations work together on this and ensure it does not end up in the wrong hands which can spoil our youth.

PM Modi on cryptocurrency last week

RBI working towards its own digital currency

The reserve Bank of India always had an opposite changes on cryptocurrencies because it feels that cryptocurrencies like Bitcoin, Ethereum, and use coin pose a risk to financial stability and has spoken out against it on multiple occasions.

Their excuse for the disapproval of cryptocurrencies is that the investors might get loved by the promises of returns on cryptocurrencies, and has ever since when the transaction of cryptocurrencies from the banking system from 2018.

No backtracking on their own views coma in July RBI said that it was working towards its own digital currency and that the central bank digital currency (CBDC) will be a legal tender issued by a Central Bank in a digital form.

They mentioned that the the central bank digital currency will be similar to the Fiat currency but it is not comparable to the private currencies in the crypto department that have came up in the recent years.

What does it mean for the current crypto users in India?

We have written a detailed article about the implication of the new bills for the crypto users and for anyone who is looking to get into the crypto scene.

Read this article for more information about the implications of the new crypto bill for Indian users!