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Govt lists bill to ban Bitcoin in India, makes way for official digital currency by RBI

A previous ban on the use of banks for payments related to cryptocurrencies was overturned by the Supreme Court in 2018. 

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New Delhi: The budget session of Parliament is all set to introduce a bill to ban private cryptocurrencies in India such as Bitcoin, Ether, Ripple. The Government has listed a bill which will ban private cryptocurrencies in India and will provide an official digital currency that will be issued by the Reserve Bank of India.

An RBI booklet on payment systems issued on 25th Jan also showed that the central bank is exploring whether to issue a digital version of the rupee.

The Union Budget, which will be presented on February 1 and The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, will seek to create a “facilitative framework” for an official digital currency.

 

“Private digital currencies have gained popularity in recent years,” the central bank booklet said. “In India, the regulators and governments have been sceptical about these currencies and are apprehensive about the associated risks. Nevertheless, RBI is exploring the possibility as to whether there is a need for a digital version of fiat currency and, in case there is, how to operationalize it,” it noted.

A previous ban on the use of banks for the payments related to cryptocurrencies was overturned by the Supreme Court in 2018.

The government will also introduce The National Bank for Financing Infrastructure and Development (NaBFID) Bill, 2021. This DFI will “provide, enable and act as a catalyst” for infrastructure financing and as the principal financial institution and development bank for building and sustaining a supportive ecosystem across the life-cycle of infrastructure projects in the country.

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