New bill on cryptocurrency: What you need to know
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New bill on regulating cryptocurrency
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 seeks to "create a facilitative framework" for the creation of the official digital currency to be issued by the Reserve Bank of India. It also seeks to prohibit all private cryptocurrencies in India.
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Exceptions to promote underlying technology
However, the bill allows for certain exceptions to promote the "underlying technology of cryptocurrency and its uses". Cryptocurrencies use blockchain technology, which are transparent and user-friendly and said to improve security in online trading.
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Parliamentary panel held talks
The Standing Committee on Finance, chaired by BJP member Jayant Sinha, met the representatives of crypto exchanges, blockchain and Crypto Assets Council (BACC)before arriving at the conclusion. Last week, Prime Minister Narendra Modi spoke out on concerns about cryptos falling into the wrong hands.
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RBI's concerns
The move comes after the Reserve Bank of India repeatedly reiterated its strong views against cryptocurrencies. The RBI has been saying they pose serious threats to the macroeconomic and financial stability of the country. It has also announced its intent to come out with an official digital currency in the face of the proliferation of cryptocurrencies like Bitcoin.
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Bill in winter session
The bill is listed for introduction in the Lok Sabha in the winter session, scheduled to begin from November 29.