On January 29, the Indian government presented a formal digital currency bill that will lay the foundation for the creation of an official digital currency to be issued by the Reserve Bank of India (RBI).
Also, the bill introduces a ban on all types of private cryptocurrencies and will allow the existence of those that are necessary to promote the underlying technology.
The regulation of cryptocurrency in India has long been a subject of controversy as the RBI has adopted stringent measures on numerous occasions, including restricting the purchase of cryptocurrency through bank accounts. It was later canceled.
Over time, Bitcoin and the crypto market in general have made a huge leap forward in terms of institutional adoption, especially in 2020-2021.
The bill, titled “Cryptocurrency and Official Digital Currency Regulation Bill for 2021,” was presented by the Indian House of Parliament. Primarily, the bill aims to create an official digital currency and prohibits any other private cryptocurrencies other than those needed to promote blockchain technology.
It follows from the document that in addition to the official digital currency in India, only major public cryptocurrencies, such as bitcoin, will be allowed, while cryptocurrencies based on ICOs, as well as those owned by private firms, such as XRP and IOTA, will lose their positions in the country’s market.
The positive aspect of this document is the regulation of decentralized cryptocurrencies, the negative one is that it closes the doors to private digital assets.