RBI To Launch Its Own Digital Currency Soon, After Crypto Bill Session This Winter

According to a bulletin provided by the Lok Sabha on Tuesday, the measure is one of 26 bills scheduled for consideration during the winter session of parliament.


The government will introduce legislation to establish rules for cryptocurrencies that will restrict private coins while also laying the groundwork for the Reserve Bank of India to issue an official digital currency (RBI).

“The bill also seeks to prohibit all private cryptocurrencies in India. However, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses,” The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, was mentioned in the briefing.

WHAT’S A CBDC?

A CBDC is a digital form of legal money. A central bank of that particular country issues it. It functions in the same way as fiat money and can be exchanged for fiat money in a one-to-one ratio.

Private cryptocurrencies have raised concerns at the Reserve Bank of India. With governor Shaktikanta Das describing them as a threat to macroeconomic and financial stability. It’s still not clear what government mean by Private Cryptocurrencies.

Digital currencies, according to the crypto platforms, require regulation and should not be banned.

A user highlights the fact that India, ranking 2nd in global Crypto adoption and now government wants to ban cryptocurrency while creating their own. He termed this move as “Regressive”.

OFFICIAL CRYPTOCURRENCY BILL TO REGULATE DIGITAL CURRENCY

The government had originally planned to introduce the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, during the budget session. Later on the government decided to postpone it in order to conduct more extensive consultations.

Author and columnist Tamal Bandyopadhyay wrote in his Tweet that, “Where is the confusion? 1. The Bills seeks to ban all pvt cryptocurrecy in India. Any and every crypto not floated by RBI is pvt. 2. It allows exceptions to promote the underlying technology — Blockchain. 3. It wants to create framework for central bank’s digital currency.”

Prime Minister Narendra Modi convened a high-level meeting on cryptocurrencies earlier this month. The bill includes officials from the Reserve Bank of India, the Finance Ministry, and the Securities and Exchange Board of India.

The increased popularity of cryptocurrency as an investment has raised concerns.

“It is important that all democratic nations work on this (cryptocurrency) and ensure that it does not end up in wrong hands, which can spoil our youth,” pm modi said last week on chairs meet.

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