India plans to declare digital currencies and ban all private cryptocurrencies.

According to the "India Today" report, the central government of India has asked to announce a cryptocurrency bill at the upcoming winter meeting to promote the official digital currency and issued by the Central Bank of l India (Central Bank).

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This bill is titled "Cryptocurrency and Official Digital Currency Supervision Act 2021" and will be submitted to the Indian Parliament for approval. According to the National Assembly, "the purpose of this bill is to provide a solid foundation for the creation of digital advertising channels through the Central Bank of India." However, there are a few exceptions to supporting the cryptocurrency's technological release and its uses.

The Indian government has always opposed the use of cryptocurrencies as currency, as only banknotes and coins have been recognized as legal and regulatory, and the central bank of India has come out in favor. change, consult the government. One official said: “The money is backed by national sovereignty. Care is possible at all levels. Even if a cryptocurrency becomes a currency, the question is who guarantees it.

Earlier on November 18, Indian President Modi addressed the "Sydney Dialogue" conference on innovation, students and technology: This will demolish our young people so that they do not fall into the wrong hands. And five days earlier, Modi was also having a discussion with top Indian leaders about the cryptocurrency.

map information. Source: Visual China

The report cites investments as the popularity of cryptocurrencies despite volatile and risky prices suggests that digital currencies could become a source of revenue for the Indian government. The benefits associated with cryptocurrencies also mean that the Indian government can directly tax services provided by digital merchants and tax them on goods and services. Cryptocurrencies can create jobs.

Since 2017, India's central bank has raised major concerns about cryptocurrencies. In July 2017, Uljit Patel, later governor of the Central Bank of India, told a panel of lawmakers that the Central Bank of India was committed to the economy associated with cryptocurrencies.

At the time, members said they were concerned that the use of virtual currency would increase as it would be difficult to identify the value of money. Patel said the Bank of India has set up a joint committee to discuss the legality of cryptocurrencies.

On April 6, 2018, the Central Bank of India issued a notice prohibiting banks and institutions under their supervision from providing services related to virtual currencies. . However, on March 4, 2021, the Supreme Court of India withdrew the notice.

Map data from the Central Reserve Bank of India. Source: written press

Shakti Kanta Das, the current Governor of the Central Bank of India, recently announced that the Central Bank of India has serious concerns about cryptocurrencies and these concerns have passed on to the government for some time. He acknowledged that the cryptocurrency market was gaining ground in value, but said that “major problems could be affected if mid-sized banks express serious concerns about the market and financial stability.

The Indian cryptocurrency industry and the trade association recently announced a joint statement claiming that Indian cryptocurrency investments have exceeded 600 million rupees and that investors have grown exponentially to over 100 million .

Last Monday, the Indian Finance Committee, chaired by former Finance Minister Jayant Sinha, announced that the Cryptocurrency Exchanges, Blockchain and Crypto Assets Commission (BACC), Indian Industry Federation (CII) and the Indian Chamber of Commerce ASSOCHAM also. Other institutions have mentioned cryptocurrencies. Members of the group have expressed serious concerns about cryptocurrencies and the need for regulation, but no one has asked the government to restrict them.