cryptocurrency

Indian government to explore new cryptocurrency plan for india as said in the New 2021 Budget.The government will explore the use of blockchain technology for digital economy, Minister of State for Finance Anurag Singh Thakur said in response to an issue raised in Rajya Sabha on Tuesday. The comments from the Ministry of Finance come just days after the Federal Reserve Bank of India (RBI) mentioned plans to bring a digital version of the Indian rupee

There was a pre-budget rumour that the Indian Government is seemingly getting to ban private cryptocurrencies, like Bitcoin, in India. The news was expected along with the 2021 budget that was announced on February 1st, but the cryptocurrency ecosystem in India was happy as it was ignored during the budget speech with the rumour getting scrapped.

Fronted by Prime Minister Narendra Modi, the right-wing Bhartiya Janata Party currently have control of India’s two houses of Parliament (the Lok Sabha and therefore the Rajya Sabha), giving the legislation a strong possibility of passing.

Cryptocurrency

Cryptocurrencies played a major role during the year of 2020 as many business transactions were being made using Cryptocurrency as means of payments. According to Sumit Gupta, co-founder and CEO, CoinDCX, the platform conveyed back in December that it used to see $20-25 million worth of trading every day, about 75% of which came from Indian investors.

Earlier in the week , the govt listed a bill titled “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” that’s aimed to supply a framework for creation of an official digital currency to be issued by the RBI and prohibit all actual “private” cryptocurrencies. Experts, however, believe that it might take a while for the country to bring any changes.

Even after much successful trading and witnessing an increase within the cryptocurrency industry, the govt thinks otherwise because it confirms that it’s no plans to introduce India’s own Cryptocurrency.

The government’s reply read ‘No’ to the first two questions, whereas for the third and fourth question, it said, “It was announced in the Budget Speech of the year 2018-19 the Government does not consider cryptocurrencies legal tender or coins and will take all measures to eliminate the use of these cryptoassets in financing illegitimate activities or as part of the payment system.

Cryptocurrency View by CEO

“Globally, cryptocurrency like Bitcoin, ethereum are considered public cryptocurrency to appreciate their open nature, where any participants can verify the transactions. During the quantity of Banking Ban, in official communication from RBI, private was deemed as Bitcoin and other public blockchains. This was a wrong classification. There has been no clear communication, on public and personal classification even today within the bill. It must be explicitly covered,” tweeted By CEO of CoinDCX.

Nevertheless, Institute for Development and Research in Bank Technology of RBI has taken the initiative of exploring the applicability of blockchain technology into the Indian banking and financial industry by conducting a workshop of academicians, bankers, regulators and technology partners, under a cryptocurrency working group.

“It deems a look by a separate committee and can reviewed intimately ,” mentioned by Surya. The cryptocurrency industry has long been seeking regulation of digital asset, arguing against a ban.

The current bill, experts reckon, may resolve ambiguity on trade digital money, which is currently neither banned nor legalised in India. The Federal Reserve Bank of India (RBI) barred regulated entities like banks from to do trade on crypto exchanges in 2018. However, the Supreme Court overturned this move in March 2020, removing restrictions on cryptocurrency trade via banking channels.

Exchange founders said there was panic within the Indian cryptocurrency investor community following news of bill. “The Indian crypto industry is during a panic right away, supported movements I see on exchanges,” said Sathvik Vishwanath, CEO of cryptocurrency exchange Unocoin.

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