A new bill banning private cryptocurrency is likely to be introduced during the budget session of Parliament. The bill is expected to open the way for the issuance of official digital currency by the Reserve Bank of India. After the introduction of this bill, all private cryptocurrencies including bitcoin will be banned in the country.
New Delhi: The budget session of Parliament has started. A bill to ban private cryptocurrency and issue official digital currency can be brought by the Reserve Bank of India (RBI) during the budget session itself. In the Union Budget to be presented on February 1, things related to the official digital currency bill can be revealed.
In addition to banning all private cryptocurrencies including bitcoin in India, the bill can also explain how to prepare a convenient framework for official digital currency to be issued by RBI. It will be introduced under the name Cryptocurrency and Regulation of Digital Currency Bill.
However, according to the Lok Sabha Bulletin, the bill allows for some exceptions to promote the technology of cryptocurrency and its use.
In 2018, the RBI had banned crypto transactions
After the decision of demonetisation, after several fraud cases came up in 2018, the RBI had banned crypto transactions. As a result, cryptocurrency trading came to a standstill as RBI asked all regulated entities like banks to stop dealing with private cryptocurrency.
Bitcoin prices rise when RBI orders return
According to a Bloomberg report, the court ruled that the RBI failed to prove Nukasan on behalf of the regulated entities from the cryptocurrency transactions in India and the order was withdrawn.
Since then cryptocurrency exchanges have resumed operations. After this, the price of bitcoin increased rapidly. Because cryptocurrency banks stopped working with the exchanges after the first RBI order.
The business of cryptocurrency has become a point of global debate. Investment hobbies like JP Morgan said that bitcoin can be seen as an alternative to gold.
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