The government of India is reconsidering a plan to ban cryptocurrencies like Bitcoin in the country. In fact, the Ministry of Finance has recently started consultations related to the issue.
India is reportedly seeking to introduce a law to reconsider banning cryptocurrencies. As the government considers a legal framework, it is more effective than a circular from the Reserve Bank of India (RBI).
According to the agenda posted on the lower house’s website on Friday, they seek to establish a framework for the central bank to issue an official digital currency.
The legislation seeks «ban all cryptocurrencies in India. However, it allows certain exceptions to promote the underlying cryptocurrency technology and its uses.».
India proposes to ban cryptocurrencies
The Indian government has introduced a cryptocurrency bill: ‘Cryptocurrency and regulation of the official digital currency law 2021».
In fact, Lok Sabha, the lower house of the Indian parliament, was included for consideration in the parliamentary session.
The aim is to create a framework for the official digital currency of India. Issued by the Reserve Bank of India (RBI). But, ban all cryptocurrencies.
Without a doubt, the budget session of parliament began on Friday and ends on April 8. With a recess between February 15 and March 8.
By the way, the Economic Times publication detailed that “a note has been moved by the Ministry of Finance, for an inter-ministerial consultation».
In fact, citing a senior government official. The truth is that, the note will be sent to the cabinet after the consultations and, later, to the parliament.
The above measures
To remember, the measure is not new in the country. Well, in 2018, as a result of a series of frauds raised in the nation, the Central Bank of India, made it impossible for its citizens to carry out any transaction with cryptocurrencies.
Faced with the ban, the exchanges asked the Supreme Court for a response. And in March 2020, they managed to obtain a favorable ruling.
As a curious fact, with the ban lifted, TechSci Research reported that, in just two months, transactions had increased by 450%. Demonstrating the interest of the Indian people in cryptocurrencies.
For its part, the document entitled «Prohibition of Cryptocurrencies and Regulation of the Official Digital Currency Law 2019»Was presented to the Ministry of Finance in February last year. And it proposes jail time for offenders, up to 10 years.
Also, heavy fines for anyone who deals with digital currencies.
The crypto community and the government’s decision
The Indian crypto community disapproves of the government’s decision. “This is crazy,” wrote one Twitter user. Another warned that the RBI had better not ban Bitcoin.
For his part, Nischal Shetty, Director of WazirX India, said: “It seems like a hasty move. Hopefully this is a precursor to positive crypto rules».
Also, Anthony Pompliano, expressed on Twitter: «Bitcoin adoption in India is about to explode. The network doesn’t care about the arbitrary rules of misinformed elites».
To this end, Pompliano gave an example: «The government of Pakistan tried to ban Bitcoin and adoption increased, not decreased. India is about to execute the best Bitcoin marketing campaign for its more than 1 billion citizens».
So is the adoption of cryptocurrencies increasing, even though they plan to ban them? Leave your opinion in the comment box.
I close with this phrase from Publio Ovidio Nasón: «We always resist prohibitions and desire what they deny us».