India plans to introduce a law to ban cryptocurrencies such as Bitcoin and implement a framework for creating a national digital currency, according to a legislative agenda listed by the government.
The “Cryptocurrency and Regulation of Official Digital Currency Bill” will create a “facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India.”
While the bill aims to prohibit all private cryptocurrencies in India, it allows some exceptions to promote the underlying technology of cryptocurrency and its uses.
An Indian government panel recommended banning all cryptocurrencies in mid-2019 and a jail term of up to to 10 years and heavy fines for offenders.
The country’s central bank in 2018 ordered financial institutions to break all ties with individuals or businesses dealing in cryptocurrencies within three months.
But the country’s Supreme Court overturned the policy in 2020, allowing crypto transactions by exchanges and traders.
Various countries such as China, Japan, the US, Canada, Estonia, and Sweden have explored the development of their own digital currencies.
While cryptocurrencies such as Bitcoin are decentralised, national digital currencies are primarily centralised and issued by central banks.
