The India Crypto Bill has been taking the internet by storm ever since it was disclosed by the Indian Government earlier this week. It goes without saying that Cryptocurrency is a majorly dynamic market in the country right now. However, digital currencies need specific regulations for them to not go out of control and haywire. That is exactly what the incoming India Crypto Bill 2021 will do, regulate digital currencies.
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India Crypto Bill 2021: What to Expect?
This bill, officially called the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is all set to be introduced during the upcoming Winter Session of the Parliament. Last year, the Indian Government came up with a similar India Crypto Bill but, it was put on hold. Discussions with industry experts and stakeholders were carried out as well. The good thing last year was, all signs did suggest that the Government was looking forward to regulating cryptocurrencies but not banning them.
However, this year, the bill has been heavy on the Crypto market in India. According to the bill, it seeks to “Prohibit all” private cryptocurrencies in India. However, the relief is in the statement thereafter that there will be “certain exceptions” when it comes to promoting the underlying technology of it all, that is, Blockchain.
Most importantly, this will be the Indian Government’s very first step towards regulating Cryptocurrency. The Crypto market recorded a staggering worth of $6.6 billion in India. This was a HUGE jump from $923 million recorded last year in April. This explains the incoming outrage from the cryptocurrency market right now. However, you need to note a couple of really important things about the upcoming India Crypto Bill.
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Cryptocurrency and Regulation of Official Digital Currency Bill, 2021: Important Things To Note
To put things simply:
1. It’s just a Proposal for now
The major problem right now is understanding that the bill is just in its proposal stage for now. There is a lot of processes involved for it to come into full force. After being introduced in the Parliament during the Winter Session, it will be up for discussion. In fact, the final draft of the India Crypto Bill may be entirely different from what has been proposed right now.
2. Crypto Currency May Never Receive Legal Tender in India
If not anything else, we can make out of the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, that Cryptocurrencies may NEVER receive legal tender in the country. This is because cryptocurrencies were primarily introduced as a replacement for fiat currency. Fiat currency is basically the Government-issued currency that we use in our everyday lives.
However, in a country like India, Fiat currency can never be replaced. El Salvador is a way smaller country, and things are different there. Making Crypto a legal tender over there is way easier than doing so in a country like India.
3. RBI might bringing its own Digital Currency
Not only has the Reserve Bank of India Governor Shaktikanta Das expressed his dislike towards cryptocurrencies previously, but the India Crypto Bill in itself also talks about RBI rolling out their very own digital currency soon. However, this is all speculation. Shaktikanta Das, a couple of weeks ago, also talked about how cryptocurrencies were a significant threat to the nation’s economy.
In fact, the ban on private cryptocurrencies is most likely an attempt to promote the digital currency to be introduced by the Reserve Bank of India. However, according to experts, the Indian Government may allow cryptocurrency transactions to take place via Government recognised and authorised platforms only.
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There are multiple reports that are currently suggesting that maybe there will not be any cryptocurrency ban in India. However, the India Crypto Bill 2021 will most likely just prohibit them. However, at this point, nothing can be said for sure before the bill actually comes into existence. Stay tuned to know more about the bill in the coming days. Let us know in the comments section about what you think. Will the bill ban cryptocurrencies or just prohibit them to a certain degree?
Sagnik Dasgupta
Tech enthusiast, gamer and somebody for whom music acts as a life capsule. Nothing fascinates me more than catchy headlines and John Mayer's guitar mastery.