India Plans Legislation to Ban Private Cryptocurrencies, Will Introduce Official Digital Currency Soon

New Delhi: Keeping the security aspect in mind, the Central government is planning to bring a fresh legislation to ban the transactions of private cryptocurrencies in the country. As per updates, the new legislation would also seek to create a new official digital currency, issued by the Reserve Bank of India (RBI). Also Read – Bitcoin Prices Soar 15% in Minutes After Elon Musk Changes His Twitter Bio, Netizens Lose Their Mind

According to a legislative agenda listed by the Centre, the ‘Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’ is set to be introduced in the Lok Sabha soon. Also Read – Dogecoin-This Meme-Based Cryptocurrency’s Price Soars to Record High With Over 800%

The agenda stated that the legislation will create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India (RBI). Also Read – Bank Holiday February 2021: Banks to Remain Closed for 8 Days in Total, Check Full List Here

The agenda also stated that the legislation which is listed for debate in the current parliamentary session 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 Central panel has last year recommended banning all private cryptocurrencies, with a jail term of up to 10 years and heavy fines for anyone dealing in digital currencies.

The panel has, however, asked the Centre to consider the launch of an official government-backed digital currency in India, to function like bank notes, through the Reserve Bank of India.

On the other hand, the RBI had in April 2018 ordered financial institutions to break off all ties with individuals or businesses dealing in virtual currency such as bitcoin within three months.

The Supreme Court, however, in March 2020, allowed banks to handle cryptocurrency transactions from exchanges and traders, overturning a central bank ban had that dealt the thriving industry a major blow.

The development comes at a time when the governments around the world are looking into ways to regulate cryptocurrencies but no major economy has taken the drastic step of placing a blanket ban on owning them.