Business

Government wants to block cryptocurrencies in new bill, prices drop: 10 points

November 24, 2021
Sezarr

Currently, El Salvador is the only country that has recognized cryptocurrency as legal tender.

The Center is likely to introduce a bill in the winter session of Parliament to ban all cryptocurrencies in India, with few exceptions, and create a framework to regulate the digital currency issued by the Reserve Bank of India (RBI). In response, all major digital currencies saw a decline of about 15 percent or more, with Bitcoin down about 18.53 percent, Ethereum 15.58 percent and Tether down 18.29 percent.

Here’s your 10-point cheatsheet for this big story:

  1. The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is listed for introduction in the Lok Sabha during the winter session beginning November 29.

  2. The Bill “seeks to create a facilitating framework for the creation of an official digital currency to be issued by the RBI. It also seeks to ban all private cryptocurrencies in India, however, it allows for certain exceptions to the underlying technology of the cryptocurrency”. Allows to promote and its use.

  3. The Reserve Bank has expressed “serious concerns” about private cryptocurrencies. Bitcoin, the world’s largest cryptocurrency, is hovering around $60,000 and has more than doubled in price since the beginning of this year, attracting crowds of local investors.

  4. The industry estimates that there are 15 million to 20 million crypto investors in India, with total crypto holdings of around Rs 40,000 crore ($5.39 billion).

  5. Recently, there has been an increasing number of advertisements promising easy and high returns on investment in cryptocurrencies, amid concerns about such currencies being used to lure investors with allegedly misleading claims. .

  6. Last week, the Standing Committee on Finance, headed by BJP member Jayant Sinha, met representatives of the Crypto Exchanges, Blockchain and Crypto Assets Council (BACC), and came to the conclusion that cryptocurrencies should not be banned, but it should be. be regulated.

  7. Private digital currencies have gained popularity over the past decade. However, regulators and governments are skeptical about these currencies and are apprehensive about the associated risks.

  8. On March 4, 2021, the Supreme Court quashed the RBI circular dated April 6, 2018, barring banks and entities regulated by it from providing services in respect of virtual currencies.

  9. Delivering a keynote address at the Sydney Dialogue on 18 November, Prime Minister Narendra Modi urged all countries to ensure that cryptocurrencies “do not end up in the wrong hands”.

  10. Currently, El Salvador is the only country that has recognized cryptocurrency as legal tender.

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