Govt of India’s proposed bill may hamper private cryptocurrency purchase

Govt of India’s proposed bill may hamper private cryptocurrency purchase

In a bid to develop a sovereign digital currency by the Reserve Bank of India and to impose a ban on all other private cryptocurrencies, the Government of India is reportedly planning to pass a bill in the parliament regarding the same- a move that has shaken India’s cryptocurrency community.

For the record, the bill aims at restricting the use of all private cryptocurrencies across the country. Although, it will levy certain relaxations to promote the underlying technology behind cryptocurrency and its uses.

Notably, industry watchers commented that the definition of ‘private’ as stated by the government could hint that any digital currency which is not regulated or controlled by the government may be a ‘private’ currency, including Bitcoin.

Apparently, the relationship of the Indian government with cryptocurrency has always been ‘shaky’, especially after the digital currency gained popularity in the country in 2017. Following this, in 2018, RBI decided to impose a ban on the use of banking channels to trade cryptocurrencies, since it was anxious about its use for money laundering, terror financing, and other illegal activities.

In March 2020, the Supreme Court of India lifted the aforementioned RBI ban, giving the cryptocurrency a second chance in the county. This helped regain the interest of investors in Bitcoin and other digital payment assets.

It is worth mentioning that, Indian cryptocurrency exchanges like Unocoin, ZebPay, and Wazir X have since then witnessed a rapid increase in user registration and trading volumes. 

Recently, Wazir X witnessed 1 million new users on its platform, indicating the growing awareness and interest among the people in India.

Seemingly, the growing popularity of Bitcoin and other cryptocurrencies is primarily driven by their price performance in the last ten months along with the technology’s long-term potential. The price of Bitcoin has increased by more than 700% since April, while other alternatives like Ethereum have witnessed stellar gains.

Although crypto has gained widespread recognition in the country among many, concern over its use for outlawed means is worrying the government. The bill drafted by the government is yet to be passed.

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