India may be getting ready to ban all cryptocurrency.
According to an official bulletin published by the Indian Parliament, the political institution is considering introducing legislation that would prohibit all private cryptocurrencies while creating the infrastructure for a digital rupee.
According to the Lok Sabha Bulletin, the legislation by the name of “Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” would ban private cryptocurrencies but, “it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.”
As both houses of the Indian Parliament are under the rule of the governing party, the legislation will likely be approved without much difficulty, converting India into the first major Asian economy to ban crypto instead of regulating it.
India May Go For a Full Ban
The intents behind the proposed legislation seem to be cracking on scammers using cryptocurrencies like Bitcoin and Monero, but experts disagree if the move would prove to be effective in doing so as only legitimate uses of crypto can be easily banned.
The proposal also aims to establish a framework for the creation of an official digital currency to be issued by the Reserve Bank of India (RBI), an interest consistent with other governments’ efforts to explore the creation of Central Bank Digital Currencies (CBDC).
The topic of CBDCs has become increasingly popular over the last year with central banks and policymakers, who have little control over the most popular cryptos – like Bitcoin.
A Complicated History
The Indian government has historically had a complicated relationship with cryptocurrencies with the RBI having banned all banks from dealing with crypto-related firms, just to have the decision reversed by the Supreme Court 2 years later.
The government has not taken any further moves toward the regulation of the cryptocurrency industry in the country ever since, but there were reports in August of 2020 indicating that a ban…