India Continues Plan on Crypto Prohibition Bill

On Monday, the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, became one of the parliamentary agendas in India. Contained in this bill are the government’s various plans over and against crypto. The country wants to prohibit private cryptocurrency and, most likely, launch its own Central Bank Digital Currency (CBDC).

This is not the first time the country will threaten such; the Indian crypto market also received similar news in 2018 that crypto assets were prohibited, but the burgeoning industry still exists regardless of the announcement. India’s apex bank had issued a circular in 2018 directing banks to stop facilitating crypto-related transactions, which the highest court in India later declared null.

However, this new proposed bill(The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021) is already causing panic and uncertainty in the burgeoning industry in India, as it is now before the parliament for the winter session.

According to the finance minister of India, Nirmala Sitharaman, the ministry had received a proposal from the apex bank last month detailing the banknotes to be upgraded to the digital version of the currency to pave the way for its proposed Central bank digital currency.

Sitharaman also cleared the air on whether the government was working to officialize Bitcoin for payment. The minister, however, poured cold water on such thoughts saying the government has no such plans.

Data from blockchain research firm Chainalysis reveals that the country’s crypto industry has grown by 641% in the last 12 months.

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