No Proposal To Recognise Bitcoin As Currency in India, Says Centre In Parliament




The status of bitcoin in India has been quite chaotic since last year. With a continuous sword of a ban hanging over private cryptocurrency and the movement not making any official statement regarding its status, people are left with speculation and confusion.

On 24th when a parliamentary notice officiated that the cryptocurrency bill would be surely discussed in the ongoing Winter session of the parliament it led to both a ray of hope and a sign of panic.

It meant two things, either the government would give some sort of legal status to crypto or its complete ban. The latter somehow seemed more likely.

Nirmala Sitaraman On Bitcoin

However,  in a recent comment Nirmala Sitaraman, the finance minister of the country made it clear that the government does not have any plans of recognising cryptocurrency as a currency.

Sitaraman also said in a written reply to Lok Sabha that the government does not collect any record on Bitcoin transactions.

In the ongoing session of Winter parliament, the government is set to table cryptocurrency, the discussion is being held for Regulation of Official Digital Currency Bill, 2021, through which it seeks a ban on all private cryptocurrencies.

The Bill seeks to “create a facilitative framework for the creation of the official digital currency to be issued by the RBI’’ and prohibit all private cryptocurrencies in India.

However, it will allow certain exceptions to “promote the underlying technology of cryptocurrency and its uses,” said the Bill.

At present, there are no regulations or bans in the country on cryptocurrency.

Ever since the ban that the Reserve Bank put on crypto back in 2018, it has maintained its strong views against cryptocurrency and that it cannot be legalised as a tender.

In a recent comment, the RBI Governor also raised doubt about the claimed market valuation by stakeholders and investors of the crypto market.

The RBI has also said unregulated cryptocurrencies pose serious threats to the macroeconomic and financial stability of the country.

Conclusion

Nirmala Sitaraman comment brings some clarity on the front of what the government plans on the status of cryptocurrency in the country.

For more news on the upcoming crypto bill, stay tuned!

Read More: It’s Bitcoin’s Time to Shine: Explains Abra CEO




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