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Government to ban Private Cryptocurrencies, Create official Digital Currency

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The Central Government of India has proposed to ban Private Cryptocurrencies in the country. They even proposed to introduce official digital currency.

The law will “create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India (RBI),” said the agenda, published on the lower house website on Friday.

The Lok Sabha bulletin said one of the purposes of the bill is to “prohibit all private cryptocurrencies in India” while providing certain exceptions to promote the underlying technology.

After almost two years of waiting, the Indian government has finally moved forward with a cryptocurrency bill.

The budget session of Parliament commenced on Friday and will conclude on April 8, with a recess between Feb. 15 and March 8. The union budget will be presented on Feb. 1.

What is the purpose of the law ?

The purpose of the law has been described as to create a facilitating framework for an official digital currency issued by the RBI and to “prohibit all private cryptocurrencies in India”.

The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.

What is Cryptocurrency ?

cryptocurrency (or crypto currency or crypto for short) is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership.

The Governments around the world have been trying to ban the cryptocurrencies but no such strong blanket ban has been made yet. None of the strong economies of the world were able to take any action on the same as yet.

Let’s wait and watch, what the new budget brings in house for the cryptocurrencies.

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