Private Cryptocurrencies to get completely banned in India in 2021

Private Cryptocurrencies

Last Updated on February 2, 2021 by Amrit Chatterjee

The Government has taken some serious steps against cryptocurrencies, just like it did against bitcoins a while back.

The key points to this ban include-

  • The Parliament has not yet received the bill which will ban all the cryptocurrencies.
  • Once these cryptocurrencies are excluded, the RBI can make its digital currency, which will not be privatized.
  • However, a few experts have said that these cryptocurrencies will not be banned in the nearer times.

The Government has enforced a bill that will exclude all the existing private cryptocurrencies in India. After banning them, the RBI will be working on an official digital currency for the country. The bill made is given the name- The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. It will be dealt with in this year’s budget session. 

Indian Government decides to eradicate Private Cryptocurrencies.

Private Cryptocurrencies
Ban on Private Cryptocurrencies

The Reserve Bank of India is also in works with India’s official digital currency, which will come as Central Bank Digital Currency (CBDC). Many details about this venture have not yet been disclosed, but this bill has been passed to make a better framework for making India’s official digital currency and eradicate all the other private cryptocurrencies being used. Once India makes its own digital currency, then even the government can promote the uses of the official cryptocurrency of the country and the technology behind it.

However, a few people feel that the private cryptocurrencies will not get banned as the government had shown its interest in banning them earlier as well, but did not. The RBI had refused all the private cryptocurrencies in April 2018. RBI’s step was supported by the Supreme Court of India initially, but it created some issues with the Central Bank.

Just like this, the same kind of bill was also passed in 2019. It was decided that people who will be using the private cryptocurrencies will be jailed for ten years. However, this bill did not make it to its existence.
Recently the Bitcoins have become more expensive, which has attracted even more Indians to start trading in cryptocurrencies.

Mining cryptocurrencies have become a popular thing in India to gain shares from its adoption. However, these cryptocurrencies have also brought in a lot of frauds in the market, like Bitcoins. Indian experts also feel that people will not stop using private cryptocurrencies just by passing a bill.

Vishal Gupta, the cofounder of Bitcoin Alliance, says that the business with cryptocurrencies will continue irrespective of whether the bill has been passed. A better option which many other countries have considered is regulating the exchanges. Coinbase, which is an American exchange, is launching to the masses on Nasdaq in America. Vishal Gupta hopes that India does not get left behind in this journey, which will make it difficult to catch back later on.

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The CEO of BuyUcoin, Shivam Thakral, has also requested the Government to consider all the stakeholders’ opinions before passing such a decision.

The Government is also in a dilemma as to whether India needs a digital currency at this point in time. If it genuinely needs one, then the RBI will have to start working more on it and successfully operate.

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