The Indian government is planning to prohibit private cryptocurrencies in the country and roll out government-backed digital currency instead.
Photo credit: Akarat Phasura / 123RF
The new bill “seeks to prohibit all private cryptocurrencies in India,” according to the agenda published last Friday on the website of India’s lower house of the parliament. However, it “allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.”
The bill also plans to “create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India (RBI).”
In 2018, the Indian central bank announced a ban to prevent financial institutions from dealing in virtual currencies such as bitcoin with individuals and businesses. Later in mid-2019, the government proposed a 10-year prison sentence for persons who “mine, generate, hold, sell, transfer, dispose, issue, or deal in cryptocurrencies.”
However, the Indian Supreme Court lifted the ban in March 2020 following challenges from several exchanges and traders who had filed a lawsuit against the RBI.
Some local players that provide trading platforms for digital currencies include Unocoin, which completed an undisclosed amount of funding led by Tim Draper last year, as well as WazirX, which jointly set up a US$50 million fund with global blockchain company Binance to support blockchain startups in India.
See also: The key players in Singapore’s thriving fintech space
Apart from India, many other countries such as the US, China, Japan, Canada, and Sweden have explored developing their own digital currencies.
Editing by Collin Furtado and September Grace Mahino
(And yes, we’re serious about ethics and transparency. More information here.)
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
