Business & Economy

India consider new law to ban private cryptocurrency, introduce official digital currencies

Cryptocurrency is basically known as the digital money generated from a code. Bitcoin was first released in 2009. After the release of bitcoin, another cryptocurrency was created. Many large banks are spending funds in either merging with crypto clients or creating their own cryptocurrency. Since 2009 blockchain technology has gained momentum.

  1. In 2007, the coders started to develop other networks like Ethereum and Litecoin to improve the code and use in different aspects. 

Reason behind the decision of banning cryptocurrency –

      The Reserve Bank of India(RBI) is only concerned with the investors, and the impartiality transactions and lack of intrinsic value which told the Internet and Mobile Association of India (IAMAI). 

        IAMAI, which counts the bitcoin exchanges, had connected to the central bank and initiated a few other ways to address the RBI concerns.

        Cryptocurrency was banned in 2018 by 80% of crypto transactions. 

India is stepping ahead to ban  transactions relating to cryptocurrency in the country. It is also known that there will be an official digital currency.

The Bill named as ‘ Cryptocurrency and Regulation of Official Digital Currency Bill,  2018’ is ready to be presented in Lok Sabha’ .

Taking into consideration the RBI will issue the official digital currency to prevent the frauds and effective framework. The bill also states the ban of all private cryptocurrencies in India. 

Co – founder and chief executive of CoinDTX said “The government is introducing the Bill during the session of parliament, and for sure the government will consider all the stakeholders before taking any decision”. He also added a statement stating “Already the initiative and contacting all the stakeholders and carry forward to the government and have a healthy ecosystem in unison”.

Paxful reported an 883% increase between January to May 2020 where it was $2.2 million to $22.1 million, the drastic change in the digital market was seen. Mumbai based crypto exchanger(WazirX) saw 400% in March 2020 and 270% in April 2020 according to TechSci.

 The startups are asking the clear meaning of ‘private’ cryptocurrency are based on a decentralized network that allows it to operate without any government intervention. 

However, the supreme court gave permission to the banks to handle cryptocurrency transactions to the traders. It is also known that during 2019 the government panel has put forward the ban of all the cryptocurrency and if someone uses it will be jailed for 10 years and huge fines dealing with digital currency.

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