Fun

Indian Government Clarifies Position on Cryptocurrency and Digital Rupee

News Feed - 2021-02-02 09:02:51

Indian Government Clarifies Position on Cryptocurrency and Digital Rupee


The Indian government has clarified its position on cryptocurrency and the country’s digital currency in answers provided by the Ministry of Finance in Rajya Sabha, the upper house of India’s parliament. The Indian crypto industry sees this clarification as positive news and that the government is unlikely to impose an outright ban on cryptocurrencies, including bitcoin. Indian Government Answers Questions About Cryptocurrency and Digital Rupee


Rajya Sabha, the upper house of India’s parliament, published a list of questions and written answers on Feb. 2 that include the topic entitled the “Introduction of India’s own cryptocurrency.”


Member of Parliament Sri Sanjay Raut asked the finance minister whether the Indian government is aware that many business companies are using cryptocurrency for international transactions during the last year and whether the government is considering the possibility of introducing India’s own cryptocurrency.


The questions were answered by Minister of State for Finance Anurag Singh Thakur. He replied “No, Sir” to the first question.


To the question about the digital rupee, he replied: “No, Sir. It was announced in the Budget Speech of year 2018-19 that the government does not consider crypto-currencies legal tender or coins and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system. The government will explore use of the blockchain technology proactively for ushering in digital economy.” Answers about cryptocurrency and digital rupee by Minister of State for Finance Anurag Thakur in Rajya Sabha.


The questions and answers published by Rajya Sabha followed the listing of the cryptocurrency bill to be introduced in the Budget session in Lok Sabha, the lower house of India’s parliament.


According to Lok Sabha’s booklet, the crypto bill seeks to create a regulatory framework for the issuance of the digital rupee by the Reserve Bank of India (RBI) and ban “private cryptocurrencies.” The RBI also recently revealed that it is exploring the need to issue a central bank digital currency (CBDC). Advocates Say Complete Ban Unlikely, Definition of ‘Private Digital Currencies’


Commenting on the Minister of State for Finance’s answers, the CEO of local crypto exchange Wazirx, Nischal Shetty, said that the answers by Shri Anurag Thakur “goes to show that government is focused on curbing illegal activities & payment systems.” He elaborated: This clears more confusion that there won’t be a complete ban on crypto.


Shetty previously said: “I do not believe there will be a complete ban on crypto in India. Most importantly, no government anywhere in the world will destroy Rs. 7,500+ crore worth of assets belonging to 7 million people.”


The CEO of Unocoin crypto exchange, Sathvik Vishwanath, opined: “While this does not indicate the future of crypto industry in India, this is evidence that it is moving in a direction favorable to crypto.”



The CEO of crypto banking platform Cashaa, Kumar Gaurav, told news.Bitcoin.com: It is too early to comment on what exactly the term ‘private cryptocurrency’ refers to as per the draft. Further, understanding that cryptocurrency is a global and decentralized system, there is no way any government can ban it.


“That would require that kind of technology and control, which technically does not rest with anyone. They can certainly ban the legitimate use of crypto which will only make it difficult for a common person who does not understand it to get involved in it,” he added.


“However, what we understand is that the Indian government is trying to crack down on scams that are running in the name of bitcoin, considering that 90 percent of these scams do not even operate on a proper cryptocurrency,” he further opined. “We are positive that the government will come up with regulations and policies that will put control on the scams and let the innovation in the industry, including the crypto like bitcoin, cashaa, ethereum that are built on the public chain to grow and thrive.”


Do you think the Indian government will ban bitcoin? Let us know in the comments section below. US Resident Operated Illegal Bitcoin Exchange Business - Faces 25 Years in Jail REGULATION | 15 hours ago US Lawmaker Likes Bitcoin — Urges Policymakers to Embrace Innovation in Regulation REGULATION | 2 days ago Tags in this story Bitcoin regulation, digital rupee, india crypto, indian crypto regulation, indian government, indian parliament, private digital currency, rajya sabha, RBI


Image Credits: Shutterstock, Pixabay, Wiki Commons Spot-markets for Bitcoin, Bitcoin Cash, Ripple, Litecoin and more. Start your trading here. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Bitso Expands to Colombia Amidst Growing Cryptocurrency Adoption in the Country
Bitso Expands to Colombia Amidst Growing Cryptocurrency Adoption in the Country Bitso, a Mexico-based cryptocurrency exchange, is expanding and strengthening its push into the Colo
GameFi airdrops are here to stay but won’t save a bad game: Execs
Brayden Lindrea5 hours agoGameFi airdrops are here to stay but won’t save a bad game: ExecsBlockchain gaming tokenomics may have got a bad wrap last cycle, but GameFi execs say it’s not going away anytime soon as it
Turner Wright4 hours agoUK government moves forward on bill aimed at empowering authorities to seize cryptoFollowing a third reading in the House of Lords, the Economic Crime and Corporate Transparency Bill will return t
Bitmex Co-Founder Arthur Hayes Recommends “Wait and See” Approach for Cryptocurrency Investors
Bitmex Co-Founder Arthur Hayes Recommends "Wait and See" Approach for Cryptocurrency Investors Bitmex co-founder and cryptocurrency investor Arthur Hayes has addressed the current
Ezra Reguerra11 hours agoNFT sales volume jumps to $129M in November — Nansen dataBlockchain analytics company Nansen reported that NFT sales volumes reached 68,342 ETH in the week ending Nov. 6.12529 Total views67 Tot
Bitcoin will crash to $50K, 10x Research warns
Josh O"Sullivan13 hours agoBitcoin will crash to $50K, 10x Research warnsAccording to 10x Research, Bitcoin’s potential drop below $50,000 is linked to dwindling buy flows and accelerating sell flows.15400 Total views1
India Confirms ‘It’s Not Illegal to Buy or Sell Crypto’ — Government Will Consult Widely on Crypto Regulation
India Confirms "It"s Not Illegal to Buy or Sell Crypto" — Government Will Consult Widely on Crypto Regulation India’s finance secretary has confirmed that it is not illega
Turner Wright12 hours agoUS crypto exchanges give XRP listings a second chance after court rulingAfter two years, Coinbase said it will reenable XRP trading, Kraken and iTrustCapital announced they had already relisted t
AMC Confirms Plan to Accept Bitcoin, Ethereum, Litecoin, and Bitcoin Cash
AMC Confirms Plan to Accept Bitcoin, Ethereum, Litecoin, and Bitcoin Cash The world’s largest movie exhibition company, AMC Entertainment, has announced its plan to accept c
OneCoin Founder’s Brother Faces 90-Year Jail Term After Plea Deal
The Department of Justice (DOJ) reached a plea deal with Konstantin Ignatov for his involvement in OneCoin Ltd., a cryptocurrency project based out of Bulgaria. Ignatov pleaded guil
Savannah Fortis11 hours agoUniversal Music and Google in talks over deal to combat AI deep fakes: ReportUniversal Music and Google are reportedly in negotiations over a tool that would allow for the creation of AI tracks
Biggest Movers: SHIB Hits 6-Week High, Whilst SOL Extends Recent Gains
Biggest Movers: SHIB Hits 6-Week High, Whilst SOL Extends Recent Gains Solana surged by as much as 30% on Saturday, setting a fresh multi-month high in the process. The move comes