Home News Indian authorities have no plans to recognize Bitcoin as a currency

Indian authorities have no plans to recognize Bitcoin as a currency

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The government of India has no plans to recognize Bitcoin (BTC) as a currency and does not collect data on transactions with the asset. Finance Minister Nirmala Sitharaman announced this during the opening winter session of the Parliament.

Thus, among other bills, parliamentarians will have to consider the law on the regulation of cryptocurrencies. Which is expected to be submitted by February 2022.

According to media reports, the government will propose a ban on the use of cryptocurrencies for making payments. But will allow trading and storing as assets such as stocks, bonds and gold.

A bill prohibiting the use of “private cryptocurrencies”

Later, there were reports about the authorities’ plans to ban most of the “private cryptocurrencies”. The introduction of such a proposal became known in September 2020. In March, the media announced the possibility of criminal prosecution for possession of cryptocurrencies. Then Sitharaman denied such intentions of the government.

Despite the legal uncertainty regarding cryptocurrencies, the Singapore-based crypto exchange Coinstore has expanded its platform and application activities to India. The company also announced the opening of offices in three cities – Bangalore, New Delhi and Mumbai.

Coinstore allocated $20 million for hiring staff, marketing and product development for the Indian market.

A central bank digital currency

On the first day of the parliamentary session, the government also received questions about plans to introduce a central bank digital currency (CBDC), according to The Economic Times.

The Ministry of Finance in response informed lawmakers that the Reserve Bank of India (RBI) is developing a phased strategy for the implementation of CBDC and is exploring use cases.

Furthermore, the ministry noted that in October, the RBI submitted to Parliament amendments to the Reserve Bank Act of 1934, expanding the definition of “banknote” to the digital form of currency.

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