Ahead of the much anticipated introduction of the new crypto law in India, on Monday, the Central Government said in the Parliamentary meeting that there is no plan of the government to boost the digital currency industry in India. Let us have a look at some of the cryptocurrency news in India.
New Crypto Law Will Not Boost Cryptocurrency
This statement of not boosting crypto in India was released by the Ministry of Finance and the Union Minister of State Pankaj Chaudhary against a query’s written reply. Chaudhary said,
“The government has no plans for boosting the cryptocurrency sector in India.”
Responding to various other queries on how reliable the digital currency sector is and whether the government can regulate the industry, he further said that,
“Currently, cryptocurrencies are unregulated in India. The Government does not collect data on the cryptocurrency sector. A Bill on Cryptocurrency and Regulation of Official Digital Currency has been included for introduction in the Lok Sabha Bulletin- Part II as part of the Government Business expected to be taken up during the Seventh Session of Seventeenth Lok Sabha, 2021.”
In many instances in the Parliament, the government has said that it does not assemble data on the cryptocurrency exchanges that are functioning in this country. On Monday, it also asserted that the government does not gather data on the number of individuals and details currently using, investing, or trading digital currency in this country.
As per reports, the government is expected to introduce the Crypto bill 2021 India in the parliament after it receives the approval from the cabinet. At the same time, as per the new crypto law, the Reserve Bank of India (RBI) also aims to introduce its own Central Bank Digital Currency (CBDC) that will be completely regulated by the central bank.
For those who are unaware of what a CBDC is, it is a cryptocurrency that is centralized and is issued by the central bank of any nation. It can be completely regulated and hence the values of such cryptos are not as volatile as other cryptos like Bitcoin or Ethereum or Litecoin. Many countries around the globe along with India are planning to issue their own CBDC in order to save the public from market fluctuations. This proposal will be passed by the government in the winter session of Parliament.
In respect to another reply in the Lok Sabha, Chaudhary said,
“Introduction of CBDC has the potential to provide significant benefits such as reduced dependency on cash, higher seigniorage due to lower transaction costs, reduced settlement risk. The introduction of CBDC would also possibly lead to a more robust, efficient, trusted, regulated, and legal tender-based payments option. There are also associated risks which need to be carefully evaluated against the potential benefits.”
He further added that,
“As CBDC is backed by the Central Bank of a country, apart from other benefits, it will not have volatility which is normally associated with the private cryptocurrencies.”
The Bottom Line
As per the new crypto law, the central government of India has said that it will not be boosting any digital currency in this country. This official statement was stated by Union Minister of State Pankaj Chaudhary and the official Cryptocurrency And Regulation Of Official Digital Currency Bill, 2021 awaits cabinet approval. The crypto bill 2021 date is not out yet. Presently, there is no control or any ban on the use of digital currency in India. The Reserve bank of India has repeatedly reaffirmed its strong opinion against digital currency saying they pose serious risks to the financial stability and macroeconomics of the nation and also doubted the number of investors trading on them along with their asserted market value.
Frequently Asked Questions On New Crypto Law
The new crypto law still awaits cabinet approval. But according to sources this bill is going to regulate the use of digital currency in India and will ban any kind of private cryptocurrencies. There are rumors as well that the government may issue CBDC soon.
Presently, there is no control or any ban on the use of digital currency in India. The Reserve bank of India has repeatedly reaffirmed its strong opinion against digital currency saying they pose serious risks to the financial stability and macroeconomics of the nation and also doubted the number of investors trading on them along with their asserted market value.
Cryptocurrencies like Bitcoin, Ethereum, Binance, Tether, Solana, and Cardano are predicted to rise in 2022.