Cryptocurrency: India to disallow private crypto and introduce its own digital currency
India is reportedly preparing to block private cryptocurrencies and instead push for the central bank’s release of the country’s official cryptocurrency. This setup may be similar to China’s move on banning crypto firms and declaring all digital currency transactions illegal.
According to The Guardian, the proposals for the crypto ban in India were flagged in a parliamentary bulletin listing for the upcoming legislation. The session will tackle “The Cryptocurrency and Regulation of Official Digital Currency Bill.”
“To create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India,” the description of the proposed bill reads. “The bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.”
The proposal came after the country’s Prime Minister, Narendra Modi, posted a tweet last week about cryptocurrencies. He said that nations should work together on crypto to make sure it will not end up in the wrong hands, and adding crypto may “spoil our youth.”
Take crypto-currency or bitcoin for example.— PMO India (@PMOIndia) November 18, 2021
It is important that all democratic nations work together on this and ensure it does not end up in wrong hands, which can spoil our youth: PM @narendramodi
The head of investment analysis at AJ Bell, Laith Khalaf, shared his opinion on the proposed ban. He said the move is another obstacle to the growth and development of crypto in the country.
“India’s plan to ban cryptocurrencies has not wrought the same damage on the bitcoin price as China’s summer crackdown, but it nonetheless marks yet another stumbling block in crypto’s advancement as an economic force in the real world,” The Guardian quoted him as saying in a statement. “It is inevitable that cryptocurrencies will continue to encounter either greater regulation or prohibition in more jurisdictions around the world.”
Meanwhile, as the Indian government looks determined to ban all private cryptocurrencies, Outlook India reported that among the digital currencies that may be affected are Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Tether (USDT), and Solana (SOL). Also, meme coins, including Dogecoin (DOGE), Shiba Inu (SHIB) and Dogelon Mars (ELON), Samoyedcoin (SAMO), are also facing uncertainties.