Is Crypto Looming? Panic Rises after Govt Lists Bill with Few Exceptions
- Centre lists Cryptocurrency and Regulation of Official Digital Currency Bill in winter session.
- Centre aims to ban private cryptocurrencies with few exceptions.
- Govt and RBI concerned over associated risks.
New Delhi: Ahead of the winter session of the parliament, the centre of Tuesday listed the Cryptocurrency and Regulation of Official Digital Currency Bill in Lok Sabha. Apparently this bill to be introduced during the winter session, will seek to “prohibit all private cryptocurrencies” with exceptions “to promote the underlying technology” and “its uses”.
As the RBI voiced concerns over private crypto currencies, it has decided to launch an official digitsl currency for the nation. The proposed bill would illustrate a framework for the same.
With the first ever official meet held between the Standing Committee on Finance, chaired by BJP member Jayant Sinha, and representatives of crypto exchanges, blockchain and Crypto Assets Council (BACC), a regularization was called for instead of an outright ban.However, the RBI argued citing illegal purposes apart from limiting the central bank’s ability to manage inflation, foreign exchange and the overall economy.
While there have been observations that a ban will be tough to enforce, or that it will only drive the entire growing trade underground, those supporting a prohibition have argued that even gambling or drug trafficking are illegal and those found violating the law face strict accrypto.Private digital currencies have gained pace tremendously raising concerns in govts on risks associated with the digital asset.
Delivering a keynote address at the Sydney Dialogue on November 18, Prime Minister Narendra Modi had urged all countries to ensure that cryptocurrency does not “end up in the wrong hands”. While China banned all Cryptocurrencies, El Salvador recognised them as legal tenders and plans to build their financial ecosystem at the base of crypto