The Indian government discusses a bill banning private cryptocurrencies
India is a very active market for the use and trading of cryptocurrencies such as Bitcoin, but at the same time, the Indian government is also one of the government agencies that actively combats cryptocurrencies.
In 2018, the Supreme Court of India ruled that Indian banks or financial institutions were prohibited from providing services for cryptocurrencies. Subsequently, many exchanges in India announced the relocation of other countries.
In 2019, the Indian government is preparing to promulgate a law prohibiting private ownership of cryptocurrencies, and now the Indian government is starting to discuss the details of this bill proposed in 2019.
If the law is passed, the Indian government will prohibit the purchase, use, and holding of any cryptocurrency throughout India.
In previous discussions, the Indian government has considered taking a hard line on cryptocurrency transactions to prohibit Indian citizens from selling, buying, and holding cryptocurrencies.
Violation of the above-mentioned policies will be deemed a crime and can be sentenced to up to ten years in prison.
This discussion is not much different from the previous ones, but the Indian government has increased the discussion of certain exceptions, such as the blockchain technology that can be used to promote cryptocurrency.
Blockchain technology can be regarded as a derivative technology of cryptocurrency. At present, the main cryptocurrencies are built on blockchain technology, which is distributed and immutable.
In fact, India is currently using blockchain technology to monitor the storage of coronavirus vaccines, so Bitcoin is banned but it is impossible to even ban blockchain technology.
The bill also requires the Central Bank of India, the Reserve Bank of India, to issue India’s national digital currency, which is linked to the Indian ruble.
This type of digital currency is provided by the national government with a denomination equivalent to the local currency for the credit endorsement. The back end may also use blockchain technology but there is no possibility of anonymity.
The main reason why the Indian government is so tough on cryptocurrency is the anonymity of cryptocurrency, which is not only used for criminal activities but also interferes with the anti-corruption of the Indian government.
The bill discussed this time in India will continue to impose a tough attack on cryptocurrencies, and the implementation of national digital currencies will help track all kinds of digital transactions.