New Delhi: The Narendra Modi Government in New Delhi is planning to introduce a new Bill in the ongoing Budget Session of the Parliament to facilitate creation of India's own 'Digital Currency', and at the same time, ban the private cryptocurrencies.
The purpose of "The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021" is to create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India (RBI), the Lok Sabha Bulletin released on Friday said.
"The Bill also seeks to prohibit all private cryptocurrencies in India", the bulletin said.
"However", the LS bulletin said, "The Bill allows for certain exceptions promote the underlying technology of crytptocurrency and its uses."
The Reserve Bank of India (RBI) had in its recently released booklet had said that it is exploring the need for a digital version of fiat currency for the country. The RBI made the remarks in a booklet titled "Payment and Settlement Systems in India" released this week.
"Private digital currencies (PDCs) / virtual currencies (VCs) / crypto currencies (CCs) have gained popularity in recent years. In India, the regulators and governments have been sceptical about these currencies and are apprehensive about the associated risks," said the booklet.
"Nevertheless, the RBI is exploring the possibility as to whether there is a need for a digital version of fiat currency and in case there is, then how to operationalise it," it added.
The cryptocurrency industry in India had welcomed the remarks made by the RBI. But, it is still to be seen how the industry will react to Modi government's plan to ban all private cryptocurrencies.
Among a number of cryptocurrencies, Bitcoin at present is the most expensive followed by Ethereum.
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