Law and Legislation

RBI In Support Of Blanket Ban On Cryptocurrencies – India.

The Reserve Bank of India (RBI) has informed its central board that it supports a blanket ban on cryptocurrencies, according to persons acquainted with the central bank’s board meeting on Friday.

According to one source, the RBI presented a lengthy briefing to the board, noting “severe concerns” about macroeconomic and financial stability, and also exchange management. The central bank also emphasized the difficulty of controlling intangible assets originating in other countries.

The RBI stated that these are accessible for trade on overseas exchanges, citing concerns about transaction secrecy, according to other sources.

According to the second source, several board members wanted a balanced perspective on these digital assets, including into consideration technical changes as well as the broader ramifications for the financial industry.

The RBI stated in an announcement on Friday, “The board also reviewed different factors relevant to the Central Bank Digital Currency and private cryptocurrencies.”

During the winter session of parliament, the government expected to present the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, in the Lok Sabha.It had previously been scheduled for the budget session but was unable to be presented because the administration opted to revise it.

The drafted measure aims to lay the groundwork for the development of an authorized digital currency to be released by the RBI. Its goal is to outlaw private cryptocurrencies in India while providing for some exclusions to encourage cryptocurrency’s fundamental technology and applications.

Prime Minister Narendra Modi will make the ultimate decision on the outlines of the proposed cryptocurrency system. The measure is doubtful to be tabled in the present session, according to ET, since the administration wants to conduct more extensive discussions.

The Prime Minister has already had multiple rounds of negotiations on the subject.

In July 2019, a high-level government group proposed an absolute ban on all types of private cryptocurrency.

It had proposed a punishment of up to Rs 25 crore and a sentence for up to ten years for anybody who dealt in them.

 

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