The Indian Cabinet is about to discuss Crypto Bill 2021. Let’s find out what the bill might do and what the future of crypto might be.
The Union cabinet of India is about to discuss the Crypto Bill 2021 to provide a legal framework for it. Additionally, they’ve made clear their intentions of not recognising them as legal tender. That is, they are not willing to allow them as an alternative mode of payment in India. You cannot exchange Cryptocurrencies for goods. Any currency that the government allows to use to exchange for goods is Legal tender. The government is stern about its intentions to never allow acceptance of any Cryptocurrency as legal tender.
After several long debates and meetings, the cabinet has decided to come to this decision. The government was initially in favour of entirely banning all private Cryptocurrencies. However, after consulting experts in the field the government opted to act differently.
The government came to a decision not to allow Cryptocurrencies to be used as a means of payment. However, people can still hold Cryptocurrencies as an asset. The government will enforce strict regulations for this.
Relationship between Crypto and Indian Authorities
RBI or The Reserve Bank of India and Cryptocurrencies have had a rough relationship in the past. RBI has barred banks from engaging with anything crypto-related in 2018. This decision was about to overturn. The supreme court of India in 2020 allowed banks to resume their affairs with Cryptocurrencies. But the damage was done by that time. Unsurprisingly, this proves that the RBI doesn’t have much faith in Cryptocurrencies.
The Reserve Bank of India has raised concerns in the past claiming that Cryptocurrencies have the potential to disrupt the macroeconomics and financial stability of the Nation.
This new law will likely be in alignment with the Financial Action Task Force (FATF) guidance. The FATF Recommendations are an international standard that Nations are implementing through measures for their conditions.
Bill on the verge of passing
The Bill was initially going for discussion in the budget session. However, the Government of India made its mind rethink it. Soon, the government is going to discuss the bill in the Lok Sabha in the winter session. After the passing of this bill, Cryptocurrencies will have a standard framework. And also, cryptocurrencies after this bill will be regulated and moderated by multiple government agencies.
Indian cabinet is about to discuss the Official Digital Currency Bill (Crypto Bill), 2021 soon. Hopefully, this will bring great news for Crypto Investors. If you liked this article and want to read more like it, do visit our website to show your appreciation.