The new bill listed by the Indian government outlines two important things for the blockchain community. Firstly, it would ban private cryptocurrencies if passed. And secondly, it will outline the framework for India’s official digital currency, Gadgets 360 reports. According to the source, the Reserve Bank of India (RBI) will be the one to issue digital currency, which might become the country’s CBDC.
The bill proposing to ban private cryptocurrencies left investors nervous. During early Covid-19 lockdowns, cryptocurrency trading rates in India grew by as much as 400%. This reflected the interest of investors in buying and selling digital assets. More people registered on cryptocurrency trading platforms because of pay cuts and job losses. Besides, individuals were unsure about how stable fiat currencies were amidst the pandemic.
However, despite the public’s interest in cryptocurrency, the government has discussed banning crypto trading in some way or another for several years. The law that would forbid trading cryptocurrencies was already being talked about since last year.
Actions discouraging the use of cryptocurrency took place as well. For instance, in 2018, Indian banks banned their clients from buying cryptocurrency with their cards. Moreover, in 2019, a government panel recommended banning all non-sovereign cryptos, with fines and up to 10 years in jail for using digital currencies.