Govt likely to introduce bill to create official digital currency, regulate cryptocurrencies

Govt likely to introduce bill to create official digital currency, regulate cryptocurrencies

MUMBAI: India seems keen to join the global race to make its own digital sovereign currency as the government is likely to introduce a bill in the Budget session of the Parliament to launch a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India, the bulletin of the Lok Sabha for the Budget session showed.

The bill named ‘Cryptocurrency and Regulation of Official Digital Currency Bill, 2021′ will be introduced in the Parliament for consideration and passing by the government.

The government’s move to create its own digital currency comes as countries like China have accelerated their plans to launch digital versions of their own currencies. China has been working on a digital yuan for over five years and is considered to be ahead in the race for digital sovereign currency.

“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 bulletin said.

The government’s move to pass a bill related to cryptocurrencies also comes amidst rising participation of Indian retail investors in cryptocurrency trading in the country.

“Our trading volumes grew over 1,000 per cent last year. User sign-ups grew four to five times. The number of new people signing up almost doubled every two-to-three months,” Nischal Shetty, founder of cryptocurrency exchange Wazir X had told in a
recent interview.

Cryptocurrency trading has seen a sharp revival as the prices of the Bitcoin soared over 700 per cent from April along with other cryptocurrencies that have risen even more.

In March 2020, the Supreme Court had quashed a Reserve Bank of India ban on cryptocurrency in India through use of the banking system to make transactions.

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