Official Digital Currency Regulation and Cryptocurrency Bill 2021 aims to build a framework that will make it easier for the Reserve Bank of India to launch an official digital currency.
All crypto values dropped by 15% or more hours after the government said that it will introduce the cryptocurrency law in Parliament’s winter session, which wants to prohibit all private cryptocurrencies in the country.
All major cryptocurrencies were down around 15% or more as of 11:45 p.m. on November 23, with Bitcoin down around 17%, Ethereum down 15%, and Tether down nearly 18%.
The Cryptocurrency and Regulation of Official Digital Currency Bill 2021 aims to develop a framework that will make it easier for the Reserve Bank of India to create an official digital currency (RBI). The bill aims to outlaw all private cryptocurrencies in the country, with some exceptions made to promote the underlying technology and its applications.
The crypto law, which intends to govern digital currencies, will be submitted in Parliament during the upcoming winter session, which begins on November 29. According to a government statement released on Tuesday, the bill is one of 26 that have been scheduled for introduction.
The first-ever Parliamentary panel discussion on cryptocurrencies was held last week, with the conclusion that cryptocurrency cannot be banned in India, but must be regulated.
On November 16, the BJP’s Jayant Sinha presided over a meeting of the standing committee on finance, which included members from crypto exchanges, the Blockchain and Crypto Assets Council (BACC), industry organisations, and other stakeholders.
On the subject, Prime Minister Narendra Modi convened a high-level conference with officials from various ministries and the Reserve Bank of India (RBI). PM Modi urged democratic nations to work together to regulate private virtual currencies, warning that they could end up in the “wrong hands” if they are not regulated.
PM Modi said it was critical to guarantee that digital currencies were not used in an illegal manner, since this may harm the youth, in a speech delivered at the Sydney Dialogue last Thursday.
The Reserve Bank of India has been adamant about not accepting cryptocurrencies, citing worries about potential threats to macroeconomic and financial stability, as well as capital controls. The Securities and Exchange Board of India (SEBI) has also expressed concern about the unregulated expansion of cryptocurrencies in India, with a focus on the country’s vulnerable retail investors.
RBI Governor Shaktikanta Das said last week that India needed to have far more in-depth discussions about cryptocurrencies. “When the central bank declares that there are major worries about macroeconomic and financial stability, it is implying that there are far more serious issues at hand. I have yet to witness serious, well-informed debates on these topics in the public sphere “Mr. Das has stated previously.
Bitcoin was down 16.91 percent versus the rupee at Rs 38,76,950, while Ether was down 14.58 percent at Rs 2,92,897.