Shares of Motherson Sumi Systems (down 3.15 per cent), Balkrishna Industries (down 2.74 per cent), Mahindra & Mahindra (down 2.13 per cent), Hero MotoCorp (down 2.09 per cent) and Ashok Leyland (down 2.0 per cent) were the top losers in the index.
While Exide Industries (up 0.29 per cent), Bosch (up 0.08 per cent) and Maruti Suzuki (up 0.02 per cent) were among the top gainers. The Nifty Auto index was trading 1.31 per cent down at 10831.15 around 01:55PM.
Benchmark NSE Nifty50 index was down 112.20 points at 15096.7, while the BSE Sensex was down 449.93 points at 51253.9.
Among the 50 stocks in the Nifty index, 22 were trading in the green, while 28 were in the red. Shares of PNB, Bank of Baroda, Vodafone Idea, YES Bank and Central Bank Ind were among the most traded shares on the NSE.
Shares of Central Bank of India, The New India Assurance, IOB, Bank of Baroda and Union Bank India hit their fresh 52 week high in today’s trade, while Vera Synthetic Ltd., Jiya Eco Products Ltd., Sanwaria Consumer Ltd., Radha Madhav Corporation Ltd., Osia Hyper Retail Ltd. and Marine Electricals (India) Ltd. hit fresh 52 week low in trade. Posted by Technical Mechzone
Gold broke the exact line at 1815.65 and traded to lows at 1783.31 and the next target is located at 1728.91. As written many months ago, DXY, Gold and the S&P’s together traded above 5 year averages. Gold and DXY as not only complementary financial instruments that must by no other choice trade together in the same location by market order but both are non risk assets and traded against the risk asset of the S&P’s.
DXY eventually broke its 5 year average and traded to 89.22 lows, S&P’s traded higher and Gold became the mis placed financial instrument. DXY below the 5 year average at 95.00’s and Gold above at 1461.20 informs Gold remains misplaced.
Either Gold breaks below 1461.20 and joins DXY in its rightful position in the proper market order or DXY breaks above its 5 year average at 95.00 and the S&P’s trades below its 5 year at 2722.43. Its customary for DXY, Gold and the S&P’s to share negative correlations and nearly impossible for a positive correlational relationship unless the relationship of off kilter.
Silver also trades above its 5 year average at 17.74 and misaligned to DXY and the S&P’s. Silver’s first break is located at 21.72 then 19.36 and 19.06. Silver’s best move to target 17.00’s is located on the break below 19.06. The first target is established at 26.43. Not much to report to Silver as its price is a dead issue and not worth the trouble. EUR/GBP and NZD/USD not only moves far and wide but both earn more profits and quicker than a Silver trade.
The S&P’s long 3915.15 to its first target at 3924.99 achieved its destination however lows traded to 3918.52. Not much existed to the S&P trade overall nor was much expected particularly after a Monday holiday and no change to daily interest rates.
S&P and DAX trades Today’s S&P’s for a quick trade is long 3912.92 to target 3922.75 then 3927.66.
Today’s DAX for anothe quick day trade is long 13994.27 to target 14029.43 then 14054.60.
EUR/USD Yesterday’s EUR/USD dropped exactly at the confluence of the daily and weekly entry at 1.2168 and target at 1.2065 achieved however lows traded to 1.2063 for an extra 2 pips.
EUR/USD For the 2ng leg to the weekly trade as posted Sunday, EUR/USD is in a crucial position and quite the opposite to the ease of the first trade yesterday. EUR/USD’s significant high/low point is located at 1.2040 and a break lower then much room exists for a drop to 1.1947.
Today’s longs are located at 1.2065 for the weekly target at 1.2114 and the daytrade location is 1.2117.
To add a 3rd leg due because our trades are continuous and never end, short at 1.2114 and 1.2117 targets 1.2094 and 1.2090. EUR/USD low point today is located at 1.2033 and 1.2026 and the daily target on a break of 1.2040.
Bitcoin blew through another milestone, surging past $50,000 for the first time as the blistering rally in the largest cryptocurrency continues to captivate investors worldwide.
The world’s largest cryptocurrency jumped as much as 4.9% to $50,548 and is now up about 70% so far this year. Bitcoin pared its gain after setting the record high. Ether, a rival crypto, hit a record on Friday and is up about 140% year-to-date.
After ending last year with a fourth-quarter surge of 170% to around $29,000, Bitcoin token jumped to $40,000 seven days later. It took just nearly six weeks to breach the latest threshold, buoyed by endorsements from the likes of Paul Tudor Jones, Stan Druckenmiller and Elon Musk. Bitcoin traded for a few cents for several years after its debut more than a decade ago
Tesla Inc.’s announcement that it added $1.5 billion in Bitcoin to its balance sheet was the most visible recent catalyst, sending the price up 16% on Feb. 8, the biggest one-day gain since the Covid-19 inspired financial markets volatility in March. Optimism grew after Mastercard Inc. and Bank of New York Mellon Corp. moved to make it easier for customers to use cryptocurrencies, while Bloomberg reported Saturday that Morgan Stanley may add Bitcoin to its list of possible bets.
“Whether it’s Musk, Mastercard or Morgan Stanley, the mood, music and momentum is impossible to ignore,” said Antoni Trenchev, managing partner and co-founder of Nexo in London, one of the biggest crypto lenders. “To the annoyance of many, the Bitcoin express has left the station.”
Tesla Boots the Bitcoin Bandwagon Closer to Corporate America
MicroStrategy Inc. doubled down on its big bet on Bitcoin. The enterprise software maker said Tuesday that it would sell $600 million of convertible bond, with the intention of adding to its Bitcoin stash. This is the second time in three months that the Tysons Corner, Virginia-based company issued debt to fund the purchase of Bitcoin.
The 400% rally over the past year comes amid a backdrop of near zero borrowing rates from central banks and unprecedented stimulus from governments in the wake of the coronavirus pandemic. Bitcoin advocates have criticized the moves as money printing even though inflation remains subdued.
Mastercard, in a blog post last week, singled out so-called “stablecoins,” which often peg their value to that of another asset, such as the U.S. dollar. Mastercard has already partnered with crypto card providers such as Wirex and BitPay, but has required digital currencies to be converted into fiat before processing payments for transactions on its network.
Trenchev cautioned that investors should be prepared for a wild ride after the latest milestone, pointing to last month’s 30% pullback as evidence.
“Short-term volatility is very much a feature of this bull market and investors should prepare accordingly,”
(A Bohemian idea that defies state control can easily gain popularity but cannot escape regulation)
If India were a parent, what kind would it be? I think it would like to accompany you on your honeymoon. So it was a bit surprising that India tolerated the Bohemian idea of cryptocurrencies for so long. But now the government plans to introduce a new piece of legislation that will outlaw Bitcoin and other cryptocurrencies. India also plans to introduce its own digital currency, thus making crypto uncool. In fact, it would not be a cryptocurrency if a government issues it.
It is not only India, governments across the world have started banning them. The cryptoprophets expected this, but they underestimated the power of the state. That the state is an actualization of an ethical idea might be a lie, but a successful myth. And old successful lies are hard to dislodge. Since 2009, when Bitcoin was created, some of the brightest tech Bohemians have sold the world a lemon. That a new kind of global currency will end the monopoly of governments and central banks over money. This new currency will not exist in physical form, it will be created from nothing by a vast network of computers as they perform a vast number of computations to randomly create it. The currency will have no intrinsic value beyond the perception that it has value, and its own predetermined scarcity.
The lure of a cryptocurrency is that it can make transactions between two individuals secure and possible without inefficient intermediaries like banks and rule-makers like governments. It offers complete anonymity and freedom—two things that governments, including democratic ones, dislike. In fact, governments dislike even their own currency notes, as it provides anonymity and too much freedom.
So, why did some people think governments would allow cryptocurrencies to thrive, or even survive? Why would governments permit a system that could end its own relevance ?
But then, who would have thought in the golden days of monarchy that all of the affluent world and most of the poor world, too, will come under the spell of a laughable idea called democracy where ordinary people elect who wields power over them?
Cryptocurrency is only a type of extreme financial and emotional democracy. Even so, it is doomed in its present form. Its technology platforms, like blockchain, will become standard as governments themselves adopt them, but the cryptocurrency as we know it today will stand no chance against fiat.
Fiat currency is based on trust in the authority that issues it. Bitcoin, on the other hand, is built on a fascinating misanthropic question: Given that two humans cannot and should not be trusted, how can a network of computers confirm that a transaction is fair?
The way people are drawn to anonymity, you would think they do something very interesting and naughty every day, and the way they react to security, you would think some transaction vanishes from their digital ledgers every day. In reality, most people are mostly dull. Yet, there is no doubt the world is in the grip of a Bitcoin mania. And it is entirely a creation of extraordinary storytelling. It has a hero who is mysterious, brilliant, moral, austere and philosophical.
His name is certainly not Satoshi Nakamoto. In the aftermath of the financial crisis of 2008, a person who went by that name created, completed or revealed an elaborate computer programme that cryptographers say is an exquisite piece of work, and he also wrote a series of essays laying out the moral reason for a new kind of money—governments and central banks were corrupt and unfit to regulate money. And he raised a philosophical question: Do we need the inconvenience of trust to transact? What if computers make a dishonest transaction so mathematically improbable that it is impossible, and also grants anonymity? He has since vanished, leaving us a revolutionary monetary system that is today worth nearly $1 trillion. minte-paperNew
If India were a parent, what kind would it be? I think it would like to accompany you on your honeymoon. So it was a bit surprising that India tolerated the Bohemian idea of cryptocurrencies for so long. But now the government plans to introduce a new piece of legislation that will outlaw Bitcoin and other cryptocurrencies. India also plans to introduce its own digital currency, thus making crypto uncool. In fact, it would not be a cryptocurrency if a government issues it.
It is not only India, governments across the world have started banning them. The cryptoprophets expected this, but they underestimated the power of the state. That the state is an actualization of an ethical idea might be a lie, but a successful myth. And old successful lies are hard to dislodge.
Since 2009, when Bitcoin was created, some of the brightest tech Bohemians have sold the world a lemon. That a new kind of global currency will end the monopoly of governments and central banks over money. This new currency will not exist in physical form, it will be created from nothing by a vast network of computers as they perform a vast number of computations to randomly create it. The currency will have no intrinsic value beyond the perception that it has value, and its own predetermined scarcity.
The lure of a cryptocurrency is that it can make transactions between two individuals secure and possible without inefficient intermediaries like banks and rule-makers like governments. It offers complete anonymity and freedom—two things that governments, including democratic ones, dislike. In fact, governments dislike even their own currency notes, as it provides anonymity and too much freedom.
So, why did some people think governments would allow cryptocurrencies to thrive, or even survive? Why would governments permit a system that could end its own relevance ?
But then, who would have thought in the golden days of monarchy that all of the affluent world and most of the poor world, too, will come under the spell of a laughable idea called democracy where ordinary people elect who wields power over them?
Cryptocurrency is only a type of extreme financial and emotional democracy. Even so, it is doomed in its present form. Its technology platforms, like blockchain, will become standard as governments themselves adopt them, but the cryptocurrency as we know it today will stand no chance against fiat.
Fiat currency is based on trust in the authority that issues it. Bitcoin, on the other hand, is built on a fascinating misanthropic question: Given that two humans cannot and should not be trusted, how can a network of computers confirm that a transaction is fair?
The way people are drawn to anonymity, you would think they do something very interesting and naughty every day, and the way they react to security, you would think some transaction vanishes from their digital ledgers every day. In reality, most people are mostly dull. Yet, there is no doubt the world is in the grip of a Bitcoin mania. And it is entirely a creation of extraordinary storytelling. It has a hero who is mysterious, brilliant, moral, austere and philosophical.
His name is certainly not Satoshi Nakamoto. In the aftermath of the financial crisis of 2008, a person who went by that name created, completed or revealed an elaborate computer programme that cryptographers say is an exquisite piece of work, and he also wrote a series of essays laying out the moral reason for a new kind of money—governments and central banks were corrupt and unfit to regulate money. And he raised a philosophical question: Do we need the inconvenience of trust to transact? What if computers make a dishonest transaction so mathematically improbable that it is impossible, and also grants anonymity? He has since vanished, leaving us a revolutionary monetary system that is today worth nearly $1 trillion.
Nakamoto showed that absolute anonymity was possible and not always shady. He even made it look sacrificial in a world desperate for fame.
Some people believe he is too good to be a single person; that he is probably a group of people. What if Nakamoto is the Central Intelligence Agency (CIA)? Or something like that? After all, the National Security Agency of the US did ponder the idea of cryptocurrency in an academic paper years before Nakamoto published his essay on it.
If I were the CIA, I would create a Bohemian cryptocurrency for every anarchist to adopt, and quietly and sit and watch what they are up to. I am not suggesting Nakamoto is a government agent, but the fact that the creator of cryptocurrency is not known defeats the very freedom Bitcoin stands for. This is why the government always wins. It has a face, however ugly. And the face reassures a majority.
History is filled with wild things that were supposed to be free, but eventually got regulated by governments. The internet itself was supposed to diminish government control, as no single power can destroy it. Yet, every government has the power today to regulate it. Social media, too, was expected to transform the world, especially through photogenic rebels on Twitter and Facebook. But these platforms are now begging governments to let them be. Streaming channels were suppose to force conservative societies to accept the freedom of artistic expression, but, as evident in India, they have meekly agreed to censor themselves to massage the thin skin of a majority.
Cryptocurrencies, too, will fail. You may argue that they’ll survive in a less rebellious form. But then a crypto has a binary quality. Either it is entirely free of state control, or it’s just another fiat currency in digital form.
The world’s largest cryptocurrency reached about $49,344 earlier in the day, and was around $49,202 as of 10:20 am in London. It’s now up about 70% so far this year. Rival cryptocurrency Ether hit a record on Saturday and is up about 150% year-to-date.
Bitcoin has been buoyed in recent months by endorsements from the likes of Paul Tudor Jones and Stan Druckenmiller. Bloomberg reported earlier that Morgan Stanley may bet on Bitcoin in its $150 billion investment arm, following news late last week that BNY Mellon plans to service cryptocurrencies for its clients. And that’s after Tesla Inc. put about $1.5 billion into Bitcoin. Skeptics warn the asset class could be in a bubble, however.
“With each major announcement like the one BNY Mellon made, other institutions are spurred to more rapid adoption and deployment of digital assets,” said Patrick Campos, chief strategy officer at Securrency, a developer of blockchain-based financial and regulatory technology, on Friday. “Tesla’s recent announcement will embolden other large corporates and institutions to accept crypto as not just a worthy asset class, but perhaps even an essential one. More important, is the corresponding build-out of institutional services to support these developments will trigger other digital assets-related developments within those institutions and in the larger ecosystem.”
India will go ahead with a complete ban on investment in cryptocurrencies, while providing existing investors a transition period to exit their holdings.
Cryptocurrency isn’t fiat currency backed by the Reserve Bank of India and its usage in all forms will be banned through the new law that will be introduced in Parliament.
This would include a ban on transacting directly via foreign exchanges.
Seven million investors hold cryptocurrencies in India worth more than one billion dollars. The ban won’t be enforced overnight and cryptocurrency investors will be given a transition period of three-to-six months after the implementation of the new law to liquidate their investments. The proposed ban — is part of a comprehensive bill on crypto and digital currencies. It may be introduced in the ongoing budget session of parliament.
Does this mean the end of the road for cryptocurrencies in India?
Not really, the bill may include certain exceptions. They could allow the promotion of the underlying technology. Like block chain, the decentralized digital ledger.
That drives — all types of cryptocurrencies.
An exception like this could provide the legal framework for the reserve bank of India to launch its official digital currency. China has a similar regulatory regime. It effectively banned trading and usage of cryptocurrencies in 2017.
Crypto exchanges were shut down. Last year; Beijing began testing its own digital currency in four cities. India’s move to regulate digital cash comes at a time — when the world is increasingly adopting it.
MasterCard and Visa have opened their payments network for some cryptocurrencies.
Customers using these platforms can now pay or accept money through crypto. Recently, auto giant Tesla made a big bet on bitcoin.
The company bought more 1.5 billion dollars worth of bitcoin.
It also allowed customers to pay through bitcoin for its products. Cryptocurrencies are now part of the mainstream global financial system.
India cannot afford to ignore this shift but it needs a legal framework first.
People, traders, exchanges, and other financial systems’ participants will not be permitted to deal in cryptocurrencies with penalties proposed in the draft law for any violation by corporates as well as individuals
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 is expected to be introduced soon in the ongoing Budget session (of parliament).
People, traders, exchanges, and other financial systems’ participants will not be permitted to deal in cryptocurrencies, with penalties proposed in the draft law for any violation by corporates as well as individuals, NDTV reported. The decision was taken after an inter-ministerial panel, including representatives from the Reserve Bank of India (RBI), felt that private cryptocurrencies will pose a risk to the financial stability of the country.
The bill, which proposes a blanket ban on all private cryptocurrencies, will also lay the basis for an official digital currency with ties to the RBI, which can regulate it, the report added.
The Centre’s draft bill comes days after car manufacturer Tesla, led by billionaire Elon Musk, announced a $1.5 billion investment in Bitcoin with plans to accept the cryptocurrency from customers purchasing its electric vehicles. This drove the digital money to an all-time high. Both the Centre and the central bank have been cautioning against digital currencies and have advised all banks and financial institutions not to deal in them. The RBI, through a circular in April 2018, had advised all entities regulated by it not to deal in virtual currencies or provide services for facilitating any person or entity in dealing with or settling them.
In mid-2019, a government committee had suggested banning all private cryptocurrencies, with a jail term of up to 10 years as well as heavy penalties for anyone dealing in digital currencies.
However, the Supreme Court in March 2020 overturned RBI’s circular, permitting banks to handle cryptocurrency transactions from traders and exchanges.
As per the official estimates, around 7 million Indians hold cryptocurrencies worth more than $1 billion.
Increased demand from institutional, corporate, and more recently retail investors has powered bitcoin’s surge this year, attracted by the prospect of quick gains in a world of ultra-low yields and negative interest rates
Bitcoin topped $40,000 for the first time on Thursday, as it continues a rally that has seen the digital currency climb more than 700% from a March 12 closing low. Increased demand from institutional, corporate, and more recently retail investors has powered bitcoin’s surge this year, attracted by the prospect of quick gains in a world of ultra-low yields and negative interest rates.
The world’s most popular cryptocurrency climbed as high as $40,402.46 and was last up 6.1% at $39,100. It crossed $30,000 for the first time on Jan. 2 and $20,000 on Dec. 16. Smaller coins ethereum, the second largest in terms of market capitalization, and XRP, the fourth biggest, gained 1.8% at $1,231 and 31% at 32 US cents, respectively. Both currencies often move in tandem with bitcoin.
Some investors viewed bitcoin as a hedge against inflation amid enormous monetary stimulus aimed at battling the economic devastation caused by COVID-19. Market participants though warned a correction could be in the cards after a scorching rally.
“While further growth is inevitable, investors should not expect this to move in a straight line,” said Gavin Smith, chief executive officer of cryptocurrency consortium, Panxora Group. “The reality is that bitcoin is far from being a magic money tree, nor is it free from downward price swings. In fact, we can expect dips as sharp as 25% at times as investors periodically withdraw profits,” he added.
Bitcoins surge happened as the market cap for the entire cryptocurrency sector topped $1 trillion on Thursday, according to data trackers CoinMarketCap and CoinGecko. Glassnode, which provides insight on blockchain data, noted that retail interest in bitcoin has increased the last few weeks, with the number of bitcoin addresses or wallets holding a “non-zero amount” of the virtual currency reaching an all-time high of more than 33 million.
The information provider also said while interest in bitcoin and news coverage have grown, it is far from being in bubble territory. The number of daily new bitcoins has still not reached 2017 levels, Glassnode said, suggesting the currency is experiencing strong organic growth in adoption, but not the sort of “viral growth typical of a bubble.”
* With the cryptocurrency bill looming large, consumers have been worried about their investments in cryptocurrencies like Bitcoin, Ethereum and others.
* We spoke to industry sources and exchanges to answer your questions, and help you understand if you should sell your Bitcoin and Ethereum investments.
* One of the key takeaways is that you should not panic.
* Read on to find out what you should do in case cryptocurrencies are banned.
One of the biggest questions in the minds of Indians holding cryptocurrencies is if they should sell their crypto investments before the Indian government bans them.
It is not an easy question to answer as there is little information from the government in this regard as of now. If you are panicking about your investments in Bitcoin, Ethereum, dogecoin and other cryptocurrencies, we are here to answer your questions.
Should I sell my cryptocurrencies?
Don’t panic. Panic selling could prove to be counterproductive, especially since we don’t have enough information about the bill. “Cryptocurrency holders in India should not panic. They should wait for the government to reveal all the details about what is being banned or not, and then take a decision accordingly,” said Nischal Shetty, co-founder of WazirX. “Consumers need not panic and sell their crypto investments. CoinDCX has put in safeguard measures to ensure investors are protected, and we have the liquidity to help consumers liquidate their investments if they want to,” said Sumit Gupta, co-founder and CEO of CoinDCX.
“Consumers who are holding cryptocurrencies should not sell their investments in haste. The information in the public domain is incomplete, the details are still not finalised and ban may not materialize,” said Arjun Vijay, co-founder of Giottus Cryptocurrency Exchange”.
What happens if the government bans cryptocurrencies?
The government will likely give investors some time to liquidate their cryptocurrency holdings, so you should not worry about it right now.
“Even if the government bans cryptocurrencies, it will likely give some time to Indian investors to liquidate their assets,” Vijay further added”.
Will the government ban holding cryptocurrencies in foreign countries?
The details are not available right now, so it is suggested that you wait and watch for official information from the government.
Can I invest in cryptocurrencies via the Liberalised Remittance Scheme?
It might be possible to invest in foreign countries taking advantage of the Liberalised Remittance Scheme that allows resident individuals in India to invest up to $2,50,000. However, in view of absence of details about the crypto ban, you should adopt a wait and watch approach.
Will banks freeze my account if I invest in cryptocurrencies? This is unlikely as your bank account and cryptocurrency investments are not related.
Will I be able to withdraw money from cryptocurrencies into my bank account?
As things stand right now, there is no restriction on selling cryptocurrencies and withdrawing those funds into your bank account. Even if the government bans cryptocurrencies, it is likely to give some time to investors to liquidate their assets. “Consumers need not worry about cashing out their investments and receiving money in their bank accounts,” Gupta added, assuring that your money will not go down the drain. According to Shetty, millions of Indians hold over INR 10,000 crore in total in various forms in cryptocurrency investments. The government will give them a way out even if it bans cryptocurrency trading.
*The central government will take a decision on the recommendation of committee and legislative proposal, says FM *A cryptocurrency bill is being finalised and it will be sent to cabinet soon, minister of state for finance Anurag Singh
A high-level committee suggested that all the private cryptocurrencies, except any virtual currencies issued by state, will be prohibited in India, finance minister Nirmala Sitharaman said on Tuesday.
In a reply to a question in Rajya Sabha whether central government is planning to issue strict guidelines on cryptocurrency trading, Sitharaman said, “A high-level Inter-Ministerial Committee (IMC) constituted under the Chairmanship of Secretary (Economic Affairs) to study the issues related to virtual currencies and propose specific actions to be taken in the matter recommended in its report that all private cryptocurrencies, except any virtual currencies issued by state, will be prohibited in India.”
The central government will take a decision on the recommendation of IMC and legislative proposal, if any would be introduced in the Parliament following the due process,” finance minister added. In 2018, the Reserve Bank of India had banned banks from processing transactions relating to cryptocurrency. In in March 2020, Supreme Court overturned the ban.
Reiterating the govt’s stance on Bitcoin, the finance minister said, “It was announced in the Budget Speech for 2018-19 that the government does not consider cryptocurrencies legal tender or coins and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system.” “The government will explore use of block chain technology proactively for ushering in digital economy,” it further said. The central government will take a decision on the recommendation of committee and legislative proposal, says FM A cryptocurrency bill is being finalised and it will be sent to cabinet soon, minister of state for finance Anurag Singh Thakur said
A high-level committee suggested that all the private cryptocurrencies, except any virtual currencies issued by state, will be prohibited in India, finance minister Nirmala Sitharaman said on Tuesday.
In a reply to a question in Rajya Sabha whether central government is planning to issue strict guidelines on cryptocurrency trading, Sitharaman said, “A high-level Inter-Ministerial Committee (IMC) constituted under the Chairmanship of Secretary (Economic Affairs) to study the issues related to virtual currencies and propose specific actions to be taken in the matter recommended in its report that all private cryptocurrencies, except any virtual currencies issued by state, will be prohibited in India.”
“The central government will take a decision on the recommendation of IMC and legislative proposal, if any would be introduced in the Parliament following the due process,” finance minister added. In 2018, the Reserve Bank of India had banned banks from processing transactions relating to cryptocurrency. In in March 2020, Supreme Court overturned the ban.
Reiterating the govt’s stance on Bitcoin, the finance minister said, “It was announced in the Budget Speech for 2018-19 that the government does not consider cryptocurrencies legal tender or coins and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system.” “The government will explore use of block chain technology proactively for ushering in digital economy,” it further said.
A cryptocurrency bill is being finalised and it will be sent to cabinet soon, minister of state for finance Anurag Singh Thakur said earlier. “Regulatory bodies like RBI and Sebi etc also don’t have a legal framework to directly regulate cryptocurrencies as they are neither currencies nor assets or securities or commodities issued by an identifiable user. The existing laws are inadequate to deal with the subject. The government had formed an inter ministerial committee and the committee has given a report. Post that there was a meeting of the empowered technology group which happened earlier. The committee of secretaries which was chaired by the cabinet secretary has also its given their report. The bill is being finalised and will be sent to the cabinet soon. So we will be bringing the bill soon,” Thakur said.
Earlier this month, the Reserve Bank of India (RBI) said that it has plans to bring a digital version of the Indian Rupee. The central bank “was exploring the possibility as to whether there was a need for a digital version of fiat currency, and in case there was then how to operationalise it,” it mentioned.
Technical mechzone 