Government To Ban Cryptocurrency & Launch It's Digital Currency.

The Government of India is expected to table a bill during the Budget session 2021 on 01.02.2021 which will see Government ban all of the private cryptocurrencies including Bitcoin in our country.

The government has 20 bills listed for the budget session among which the bill named ‘The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’ is also present.

The purpose of this bill is to ban all the private cryptocurrencies and build a framework for its nation’s digital currency issued by The Reserve Bank Of India. The bill will also allow certain exceptions to promote the underlying technology of cryptocurrencies and their uses.

The Lok Sabha Bulletin for Budget Session issued on 29.01.2021 states the purpose of introducing this bill as “To create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of 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.”

The government has always been skeptical about the usage of cryptocurrencies in India. Previously in 2018, The Reserve Bank Of India imposed a ban on transactions of cryptocurrencies following the rise in numbers of Cryptocurrency Frauds.

However, in 2020 Supreme Court Quashed the order of RBI which imposed such a ban stating Disproportionality as the reason for such order.