Amid concerns over cryptocurrency, the government is set to introduce “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021″ in the winter session of Parliament beginning 29 November for consideration and passing.
Zerodha co-founder Nikhil Kamath took to Twitter to enquire about what will happen to cryptocurrency in circulation if the govt decides to ban it.
“Is the Indian govt banning cryptos? What happens to everything in circulation already?” the Zerodha co-founder tweeted.
Nikhil Kamath recently took to Twitter to voice some of his doubts over cryptocurrencies.
“The problem with bitcoins is that there are 1,000 different similar coins. If anyone can create currency, what’s the point of currency. A 100 years ago if 20 of my 100 neighbours started their own currency, I would favour the one with the most muscle, ie govt, for me,” Kamath had tweeted on 16 November.
He also mentioned that he is “no expert here, want to learn more”, and invited relevant arguments and information.
What happens if the govt decides to ban cryptocurrency?
Well, if the government decides to ban cryptos, then the transactions between the bank and your crypto exchanges will be stopped. You will not be able to convert your local currency to buy any crypto. Also, you will not be able to get them encashed.
Currently, there is no regulation or any ban on the use of cryptocurrencies in the country. Notably, there have been a rising number of advertisements, featuring even film stars, promising easy and high returns on investments in cryptocurrencies in recent times.
Prime Minister Narendra Modi, last week, held a meeting on cryptocurrencies with senior officials and indications are that strong regulatory steps could be taken to deal with the issue.
The RBI has repeatedly reiterated its strong views against cryptocurrencies saying they pose serious threats to the macroeconomic and financial stability of the country and also doubted the number of investors trading on them as well as their claimed market value.
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021
The bill seeks “to create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India”. The bill also seeks to prohibit all private cryptocurrencies in India but it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.
Originally started with Bitcoin in 2008, there are currently hundreds of cryptocurrencies being traded on private exchanges internationally, including India. Due to its stratospheric rise, Bitcoin is considered the best investment of the last decade. Originally priced at around 10 cent, the coin was being traded at over $60,000 till last week.
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