Budget 2021: Bill may bring ban on cryptocurrency

The Indian government will introduce a bill in the upcoming budget session to ban the business of cryptocurrencies in the country. Along with this, a framework for the official digital currency to be issued by the Reserve Bank (RBI) will also be introduced. In this context, this budget session is going to be very important. The move by the Indian government is expected to end the ambiguity on cryptocurrencies. Currently, cryptocurrency is neither banned nor valid in the country. However, RBI has banned banks for cryptocurrency transactions. The ban was lifted by the Supreme Court in March 2020.

Information given about the introduction of the bill

According to the Lok Sabha Bulletin, the official Digital Currency Regulation Bill 2021 is likely to be introduced in the budget session of Parliament. According to the information received, this bill may decide to ban all private cryptocurrencies within the country. However it may also allow some exceptions to promote its inherent technology and usage.

What will happen if the bill is passed

If this bill on cryptocurrency is passed, then cryptocurrency will be banned from using as a legal transaction and currency. Cryptocurrency will be excluded from the payment system. Apart from this, the central government wants to nominate RBI as the regulatory and enforcement directorate in case of any kind of crime under the cryptocurrency bill.

Digital version expected to be released at Rs.

At the same time, on its earlier payment system, the RBI booklet released on 25 January said that the RBI is figuring out whether a digital version of Rs should be released. In a way, it is seen as a step towards issuing digital currency from India.