Here's What You Need to Know About the Bill for Banning Cryptocurrencies

  • 17th Feb'21
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Investing in cryptocurrencies has been in trend lately, and a number of big companies have bought cryptocurrency worth hundreds of millions of dollars. One of the most important reasons behind dealing in cryptocurrencies is that they are not regulated by any intermediary authority. Led by bitcoins, cryptocurrencies seem to take over payment and banking systems as well. But, the new crypto bill has left a lot of unanswered questions in people’s minds. Let’s have a look at it.

 

Read the below articles to know about cryptocurrency in detail:

 

  • All about cryptocurrency

Cryptocurrencies are digital currencies that are secured by cryptography. It is used as a medium of exchange in the market. These currencies are based on blockchain technology. Blockchain is a specific type of database, and it stores information and data in blocks that are chained together. Read more.

  • 10 most important cryptocurrencies

Bitcoins are the leader of cryptocurrencies in terms of market capitalization, user base, and popularity. But, there are several other important cryptocurrencies as well about which you may not be aware of. Click to know about 10 important cryptocurrencies other than bitcoins. 

 

 

Bill for banning cryptocurrencies in India

When you see the images of cryptocurrency, you think it is like the traditional coins, but it is not in reality. Traditional currency is in paper and metal form like notes and coins, or electronic form in bank accounts. A cryptocurrency is also a form of electronic money; the only difference is that the record of cryptocurrency is maintained simultaneously by thousands of computers instead of a centralized entity such as a bank.

Recently, a new bill was listed for introduction in Parliament, which seeks to ban all private cryptocurrencies in India. In 2018, RBI had attempted to ban cryptocurrencies, but the Supreme Court overturned the order in 2020. In 2019, a similar bill was drafted that proposed 10-year imprisonment for any individual found to be dealing with cryptocurrencies.

 

The purpose of the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 has been described as:

  • to create a facilitative framework for an official digital currency issued by the Reserve Bank of India (RBI)

  • to ban all private cryptocurrencies such as Bitcoin, Ether, and Ripple

 

But, there are certain kinds of exceptions that will be there. These are:

  • Promoting the underlying technology of cryptocurrency and its uses

  • RBI will explore the possibility of a need for a digital version of fiat currency and, if there is any possibility, then how to operationalize it

 

The Bill also seeks to prohibit all private cryptocurrencies in India; however, it allows for certain exceptions to promote the underlying technology and its uses. 

-Lok Sabha Bulletin

 

Go through the below articles to have a clearer picture of the ban on cryptocurrencies:

 

  • What does the crypto bill mean for bitcoin investors?

The news of a bill for banning cryptocurrencies in India has left people awestruck, especially the investors. The cryptocurrency sector was a great opportunity for the people who wanted to make a high profit with the higher risk involved, but now what? The bill has indeed left the investors in a lot of confusion. Read more.

 

Source: India TV

  • A series of questions on India’s proposed Crypto Ban bill

The introduction of a bill to ban cryptocurrencies has created a lot of havoc in people’s minds. There are a lot of unanswered questions like, should I sell my cryptocurrencies? What happens if the government bans cryptocurrencies? Get the answer to these questions here.

  • Understanding the bill thoroughly.

Though the bill for banning cryptocurrencies in India has been proposed recently, the discussion for the same has been going on for a long time. A series of events in the last 2-3 years were directed towards the possibility of the ban. Click to understand the bill thoroughly.

  • What is Central Bank Digital Currency?

A CBDC or central bank digital currency is the digital form of fiat currency of a particular nation. These are electronic coins that use a blockchain-based token electronic coin or account backed by the government. The value of private virtual currencies is based on their ownership, distribution, and trading on exchanges, whereas a CBDC’s intrinsic value is equivalent to any other form of money issued by the central bank. Read more.

 

We, at OpenGrowth, are continually looking for trending startups in the ecosystem. If you want to know any further information about the startup ecosystem or have any mind-boggling ideas, do refer our other blogs. 

Sources/References:

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About the author:

Jyotshana Rani, OpenGrowth Content Team

Jyotsana is very keen to express her views on new topics and wants readers to remember her through her writing. She is passionate about reading and believes that words wield the power of changing the scenario and she uses them to encourage people to the best of her knowledge.


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