Amid the chaos in the crypto world in India in the past two days, Finance Secretary TV Somanathan has said cryptocurrencies won’t be a legal tender in India, just like gold, silver and alcohol, and that the issue is “off the cards”.
The finance ministry is preparing a Cabinet note for further discussions on creating a regulatory regime for an official digital currency issued by the Reserve Bank of India (RBI) and prohibiting private cryptocurrencies.
Notably, his statement comes two days after the development that the government will bring in the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, in the Winter Session of Parliament starting November 29.
Also Read: Earthquake of 6.1 hit Thenzawl in Mizoram around 5.15 am
The bill seeks to “prohibit all private cryptocurrencies in India” but allows for “certain exceptions to promote the underlying technology and its uses”. It also aims to “create a facilitative framework” for the creation of the official digital currency to be issued by the RBI.
India has been taking a keen note on cryptocurrencies, thanks to its robust growth in the country amid a lack of regulations, but the government has been eager to bring in laws to regulate the digital currency sector.
Prime Minister Narendra Modi had last week said cryptocurrencies must not fall into the “wrong hands and spoil our youth”, urging all democratic nations to come together and ensure things like these do not happen. The government and the RBI had recently hinted about floating a strong regulatory control on cryptocurrency to avoid money laundering and terror financing, rather than banning it entirely.
(With inputs from agencies)
