Since the government completely banned banks that provide services to crypto companies in April 2018, the Indian crypto community has had discussions with the government to discuss their take on cryptocurrency and technology. blockchain before finding a way to regulate the industry.
In the latest update on January 29, the government revealed to the House of Representatives (Lok Sabha) its intention to propose the “Digital Currency Law” and the “Official Digital Currency Law of 2021” during the next session.
As mentioned in the “Lok Sabha” issue, the bill will have two agendas. The first is to “create a practical framework for the creation of official digital currencies issued by the Reserve Bank of India”, and the second is to “ban all private cryptocurrencies in India”, while noting that this will allow some exceptions to promote Indian Blockchain, it is the core technology behind crypto.
The announcement of the bill caused panic
Since the budget was not announced until two days later, on February 1, the bill on the parliamentary agenda sparked panic in the Indian cryptocurrency industry, some of which have speculated that the government would announce its intention to ban “private cryptocurrency”. During the budget period.
This panic caused Bitcoin (BTC) to trade at a price 20% lower than the global price, when the usual trade premium was 10%. However, when the current Minister of Finance and General Affairs, Nirmala Sitraman, did not mention anything in the budget announcement, the community was relieved. After the budget was announced, this also led to a rebound in the price of Bitcoin in India.
Nischal Shetty, CEO and Founder of WazirX Cryptocurrency Exchange, told Cointelegraph: “The fact that this fact is not mentioned in the budget shows that the government is in no rush to make a decision.” Shetty also added that if the bill is proposed in the next parliamentary session, how the government will proceed with the bill:
“If the bill is proposed, it is likely to go to a standing committee so that it can discuss with the Indian crypto industry before advancing the regulation of the sector. After all, it is a very important bill that includes finance and technology. I am confident. The Standing Committee will first discuss with stakeholders in the area of coding. ”
Although, as reported by CNBC-TV18, the government can pass the bill through the “legal route” instead of submitting it to parliament and letting it go through the usual stages of passing bills in government. two chambers of parliament.
The law states that even if parliament is adjourned, the law can be enforced with the approval of President Ram Nath Kovind (Ram Nath Kovind). The report also points out that the decree can be implemented within one month of its publication. This sparked an uproar in the crypto industry and raised concerns about the impending ban.
Recently, the hashtag #IndiaWantsCrypto was added to discussions on Twitter in India. Since many investors and other crypto people have also started using the same tag, the tag has gained wide attention in the Indian crypto community. After India announced the Cryptocurrency Bill, WazirX launched an industry-wide program which adopted a massive email campaign of the same name, namely Indianwantscrypto.net. This will allow citizens to send letters to members of their constituency urging them to regulate cryptocurrencies.
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The bill to be debated in Parliament also announced that the Reserve Bank of India will establish a framework for how India will create an official digital currency supported by the Reserve Bank of India modeled on the legal tender Indian rupee.
This is mainly due to the fact that large economies such as China have entered the beta phase of their own digital currency. This step is called electronic payment in digital currency, which is basically a digital version of the renminbi. Niraj Khandalwal, co-founder of the CoinDCX cryptocurrency exchange, told Cointelegraph:
“In the next few years, we believe that each country will have its own independent digital currency, and the countries that adopt the first will have a huge advantage. If issuing in central bank money has clear advantages, then India should not be abandoned and preventive. He takes a step