Winter session bill to ban private cryptocurrency in India listed
Delhi -The government of India has listed the Cryptocurrency and Regulation of Official Digital Currency Bill on Tuesday. The bill would be introduced in Parliament’s winter session. Bill seeks “to prohibit all private cryptocurrencies but provides for certain exceptions to promote the underlying technology and its uses.” The bill also places a proposed framework for RBI (Reserve Bank of India) for creating an official digital currency in the country.
Recent days have witnessed a rising debate on whether private cryptos should be completely banned in India or it should be regulated by the government through shares and bonds. A vocal body has been campaigning that cryptos must be included under regularization rather than a complete ban by the Centre.
RBI, on the other hand, has been advocating a complete ban on crypto citing its possible illegal use. Additionally, they would limit RBI’s control over managing inflation, foreign exchange, and the overall economy of the country.
Varied and highly divergent views on the issue recently prompted Prime Minister Narendra Modi to call for global cooperation on cryptocurrency handling and regulation. El Salvador is currently the only country that has permitted the official use of cryptocurrency. On the other hand, China has banned all cryptocurrencies.
The government has said that it is unlikely that bill would be introduced in the first week of the winter session of Parliament that is scheduled to begin from Monday as it has not been finalized yet. But it is sure that all focus would be on the government on how it would define “use of cryptocurrency”.
Arguments have come forward that if the crypto is defined as an asset or commodity, it might lead to trading and exchange. The government has appointed a committee headed by SC Garg, former economic affairs secretary. It has submitted its recommendations that seek banning of digital currency and the government on this line plans to introduce a bill during the budget session.