The Indian government has announced that the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is expected to be tabled in the Winter Session of Parliament. The bill will seek to create a framework for the official digital currency to be issued by the Reserve Bank of India. The bill looks to “prohibit certain private cryptocurrencies while allowing certain exceptions to promote the underlying technology and its uses.”
The Central Bank digital currency is a systematic first step towards adoption of blockchain technologies for enhancing administrative service delivery capabilities to the remotest parts of the country. This will pave the way for legalising crypto currency in India. It seems the Indian government comprehends the complexities involved and is moving in a critical, balanced and thoughtful manner.
It seems India is planning to restrict private coins that by their design restricts access to their transactional information. This could also be a welcome move because such coins could be abused in the dark net and for money laundering. It is a systematic progressive step towards adopting new technologies that will help break the imperial shackles of bureaucracy laid down by the British colonial system.
The government notification has created some consternation in the crypto markets and some of the coins have dropped as much as 20%. Taking advantage of this mayhem, some so-called experts are fanning fuel to the fire by advancing their…