No proposal to recognise bitcoin as currency, finance ministry says in Lok Sabha | Latest News India
The Union’s finance minister said in parliament on Monday that the central government does not collect data on bitcoin transactions. It also said there is no proposal to recognize bitcoin as a currency in the country.
The response took the form of a written response in the Lok Sabha to a question about cryptocurrency. A legislation seeking regulation of cryptocurrency will be discussed in the winter session of Parliament, which began Monday.
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, seeks to create a framework to regulate digital currencies issued by the Reserve Bank of India (RBI).
According to the Lok Sabha website, the bill will also seek to ban all private cryptocurrencies in India, subject to certain exceptions to promote the underlying technology of cryptocurrency and its use.
Currently, there is no regulation or ban on cryptocurrency in the country.
Prime Minister Narendra Modi had a meeting earlier this month where he discussed the issue with senior officials. The Standing Committee on Finance, chaired by Jayant Sinha, leader of the Bharatiya Janata Party (BJP), this month met with representatives of crypto exchanges, blockchain and Crypto Assets Council (BACC), among others, and came to the conclusion that cryptocurrencies should not should be banned, but regulated.
The Reserve Bank of India has repeatedly reiterated its strong stance against cryptocurrencies, saying they pose a serious threat to the country’s macroeconomic and financial stability and also questioned the number of investors trading with them and their claimed market value.
The RBI had announced its intention to release an official digital currency in light of the proliferation of cryptocurrencies such as bitcoin.
Cryptocurrencies operate on blockchain technology – a decentralized ledger of transactions. This is not kept or kept in one place or with a central authority. Instead, it is spread across a network of computers, known as peer-to-peer networks.
This system is used to verify cryptocurrency transactions.