Indian Lawmakers Pass Bill For Blanket Ban Of All Cryptocurrencies In The Country

Indian lawmakers have introduced a bill to ban all cryptocurrencies across the country and issue a new central bank digital currency (CBDC). The bill titled “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” was introduced on the 30th of January. The bill was included to be discussed in the current budget session.

The budget session, which occurs three times a year, consists of elected members selected from the ruling and opposition party. Earlier this month, during the first budget session of the year, the Finance Ministry discussed plans for 2021 expenditure and tax collection, but nothing was mentioned on cryptocurrency.

However, the new bill will address a blanket ban on digital assets in India.

According to a Cryptobriefing report, an official of the Finance Ministry commented on the newly-introduced bill. The official revealed that cryptocurrencies backed by fiat currency issued by India’s Reserve Bank would not be affected by the ban.

The ministry official said that there would be provision for existing investors to liquidate their crypto investments. The official noted that the investors would be given three to six months to offload their crypto holding if the law is eventually implemented.

Additionally, the law also prohibits “transaction directly via foreign exchanges.”

The purpose of the bill stated:

“To create a facilitative framework for creation of the official digital currency to be issued by the RBI.”

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