Government lists bill to ban Bitcoin in India, create official digital currency

(An RBI booklet on payment systems issued on 25th Jan also showed that the central bank is exploring whether to issue a digital version of the rupee)

In the legislative order of business for the budget session of 17th Lok Sabha that commenced today, the Government has listed a bill providing for the banning of all private cryptocurrencies in India such as bitcoin, ether, ripple and others. The bill also provides for the creation of a legislative framework on an official digital currency.

An RBI booklet on payment systems issued on 25th Jan also showed that the central bank is exploring whether to issue a digital version of the rupee. “Private digital currencies have gained popularity in recent years,” the central bank booklet said. “In India, the regulators and governments have been sceptical about these currencies and are apprehensive about the associated risks.

Nevertheless, RBI is exploring the possibility as to whether there is a need for a digital version of fiat currency and, in case there is, how to operationalize it,” it noted. A previous RBI ban on the use of bank channels for payments associated with cryptocurrency issued in 2018 was overturned by the Supreme Court in March 2020 creating a vacuum in the regulation of cryptocurrency in India. Posted by Technical Mechzone