While Banning Cryptocurrencies In Current Session, The Indian Parliament Is Set To Consider Bill That Creates Digital Rupee

Where Is India Positioned In Crypto World? 

Finally moving forward with a cryptocurrency bill is the Indian government. The bill has been listed for consideration in the current parliamentary session of Lok Sabha the lower house of India’s parliament entitled, “ The Cryptocurrency and Regulation of Official Digital Currency Bill 2021”. To be issued by the Reserve Bank of India but prohibiting all cryptocurrencies, it seeks to create a framework for India’s official digital currency. 

Set To Introduce Cryptocurrency Bill In Current Parliamentary Session Is The Indian Government

The Indian government has finally moved forward with a cryptocurrency bill after almost two years of waiting. The bill entitled “The

Cryptocurrency and Regulation of Official Digital Currency Bill 2021”, is listed for consideration in the current parliamentary session according to Lok Sabha’s bulletin dated Jan. 29. With a recess between Feb 15 and March 8, the budget session of Parliament commenced on Friday and will conclude on April 8. On Feb 1, the union budget will be presented. 

During the budget session, the bulletin lists the bills the Indian government has sent to be taken up. Whose description reads as follows, among them is the cryptocurrency bill. 

To be issued by the Reserve Bank of India, creating a facilitative framework for the creation of the official digital currency. It allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses, however, the bill also seeks to prohibit all private cryptocurrencies in India. 

Listed for introduction, consideration, and passing in the budget session is the source of Lok Sabha’s bulletin showing the cryptocurrency bill. 

The government has listed a bill providing for the banning of all private cryptocurrencies in India such as bitcoin, ether, ripple, and others in the legislative order of business for the budget session of 17th Lok Sabha that commenced today was what the Mint publication explained. 

Headed by former Finance Secretary Subhash Chandra Garg, this bill to ban cryptocurrencies resembles the crypto bill drafted by an interministerial committee. Unveiled by the finance ministry in July 2019 was that bill dated February 2019. Providing for the creation of a central bank digital currency (CBDC) the digital rupee, it proposes to ban all private cryptocurrencies. The finance ministry has been silent on the bill until now as Garg had since resigned from his government work. 

Acknowledging the popularity of cryptocurrencies on Monday the Reserve Bank of India published a booklet on India’s payment systems.

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 is what the central bank also confirmed about it. On bitcoin transactions, in December the finance ministry was reported to be considering imposing an 18% goods and services tax (GST). 

What Is The Crypto Community’s Reaction For The First Introduction Of Crypto Bill In Parliament?

This is the first time that a bill to ban crypto has been listed for consideration in Lok Sabha although there have been reports of the Indian government planning to prohibit cryptocurrencies before. 

Disapproving of the government’s’ decision is the Indian crypto community. One Twitter user wrote that it's insane. Stating that the crypto bill should not be a FUD at this point or India will miss out on the momentum and innovation in the decentralised space another warned that the RBI better not ban bitcoin. 

Before presenting technology-related bills in parliament, a country as large as India should at least work on understanding the underlying terminologies. Whereas it seemed like a hurried move. This can potentially destroy a lot of value held by the general public if done wrong. This was the comment of the CEO of the Indian crypto exchange Wazirx, Nischal Shetty. Emphasising the following he added this is a precursor to positive crypto regulations and let’s hope so: 

It doesn’t mean it will be cleared just because a bill is presented. Setting us back by a decade is wrong or hasty regulations. Catapulting India to the forefront of this technology are the right regulations. 

The CEO also believes, they will raise issues around this as they have leaders who are technologically capable. 

The Final Words 

Pointing out that it is estimated that there are more than five million Indians holding a combined wealth of $10 billion in bitcoin which is 2% of India’s forex reserves, taxations on crypto can fetch a few billion dollars in taxes to the Indian govt, was Neeraj Khandelwal co-founder and chief technology officer at Coindcx another Indian cryptocurrency exchange.

Previous attempts to ban bitcoin in India have been unsuccessful as he reiterates. During the RBI imposed banking ban the industry has survived 2 years. 

Following Tesla CEO Elon Musk changing his Twitter profile to “#bitcoin” and tweeted, “ In retrospect it was inevitable,” the Indian crypto ban news came after a price spike in bitcoin.