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The central government intends to draught a bill on cryptocurrencies in the upcoming Winter Session of Parliament, allowing the Reserve Bank of India to issue an official digital currency (RBI).
The bill will be introduced and passed in Parliament under the title “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.”
According to a Parliament bulletin, “The stated intent of the Bill is to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India.”
In addition, the bill intends to outlaw all private cryptocurrencies in India. It does, however, allow for some exceptions in order to promote cryptocurrency’s underlying technology and applications.
In the coming Winter Session, the Centre plans to present a total of 26 new Bills in the Lok Sabha.
Top government sources have suggested that India may not fully reject the concept and technology of digital currencies, and instead take a more assertive stance than China.
Because currency notes and coins are backed by statute and regulated by the RBI in consultation with the government, the government was opposed to cryptocurrencies being considered as currency.
“The currency has the backing of the sovereign. It can be regulated at every level. In case of cryptos getting the status of currency, the problem remains, who will provide the guarantee,” said an official.