Digital Currency Bill: Crypto startups strive for clarity on government proposed ban of ‘private’ cryptocurrencies
The RBI in its brochure on payment structures released this week had said that it is discovering the option as to whether there is a necessity for a digital type of fiat currency.
As the Modi government aspects to familiarize a new bill in the continuing parliamentary session for India to have its official digital currency, cryptocurrency startups have knotted to urge the government to occupy them in the decision-making procedure.
According to the bulletin of the Lok Sabha on Friday for the budget sitting, The Cryptocurrency, and Regulation of Official Digital Currency Bill, 2021 bill required to ban all private cryptocurrencies” in the country like Bitcoin excluding for sure exclusions to endorse the main technology of cryptocurrency and its usages, the legislation delivers.
The bill, however, intended to “generate a facilitative framework for the formation of the official digital currency to be issued by the Reserve Bank of India.
The startups are now observing for precision on the term ‘private’ as cryptocurrencies are based on a spread and decentralized network that permits them to function beyond the control of the government or any governing establishments alike to the internet.
Its success will depend on the facts, mainly the definition of what the bill calls ‘private cryptocurrencies’. This is not a mutual term. Bitcoin is not secretly owned by anyone.
Accepting that cryptocurrency is a worldwide and decentralized system, there is no way any government can ban it. That would necessitate that kind of technology and control, which technically does not rest with someone. They can surely ban the authentic use of crypto which will only make it difficult for a common person who does not recognize it to get involved in it, stated Kumar Gaurav- Founder and CEO, Cashaa.
CBW - External Analyst