The proposed legislation that is yet to be tabled in the Parliament might only legalise the cryptocurrency currently mooted by the Reserve Bank of India (RBI) while banning all others.
If you are scared that all your crypto investments will vanish into thin air as soon as the government brings legislation to ban private digital currencies, then we have good news. The Indian government is reportedly looking to offer an exit window to all crypto holders so that they can square off their investments.
In inter-ministerial discussions, lawmakers have reportedly discussed granting investors an exit window of 3-6 months before completely banning the trading, mining and issuing of cryptocurrencies in India with the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.
It is estimated that Indians have invested around $1.5 billion or Rs 10,000 crore in digital coins. The proposed legislation that is yet to be tabled in the Parliament might only legalise the cryptocurrency currently mooted by the Reserve Bank of India (RBI) while banning all others, according to a report by The Indian Express.
Previously, RBI has suggested that the central bank is pretty keen on launching its own cryptocurrency. Notably, India’s approach towards cryptocurrencies appears to be very familiar to the one follower by China. Beijing has also banned all the private cryptocurrencies in the country and has launched an official digital coin.
RBI Governor Shaktikanta Das had recently said that the Central bank digital currency is a work in progress. “The RBI team is working on it, technology side and procedural side… how it will be launched and rolled out.”
The RBI had also said that it is exploring DLT (Distributed Ledger Technology) for its application in improving financial market infrastructure. The Central Bank is also considering leveraging the DLT technology as a potential technological solution in implementing central bank digital currency (CBDC).