Currently, El Salvador is the only country that recognizes 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 a few exceptions, and create a framework to regulate digital currency issued by the Reserve Bank of India ( RBI). In response, all of the major digital currencies saw a drop of around 15 percent or more, with Bitcoin down around 18.53 percent, Ethereum down 15.58 percent, and Tether down 18.29 percent.
Here's your 10-point cheat sheet for this great story:
-
The bill on cryptocurrencies and regulation of the official digital currency, 2021, is included for introduction in the Lok Sabha during the winter session, scheduled to start on November 29.
-
The bill seeks to "create an enabling framework for the creation of the official digital currency to be issued by the RBI. It also seeks to ban all private cryptocurrencies in India, however, it allows certain exceptions to promote the underlying technology of the cryptocurrency and its uses.
-
The Reserve Bank has expressed "serious concerns" about private cryptocurrencies. Bitcoin, the world's largest cryptocurrency, is hovering around $ 60,000 and its price has more than doubled since the beginning of this year, attracting hordes of local investors.
-
Industry estimates suggest that there are between 15 and 20 million cryptocurrency investors in India, with total crypto holdings of around Rs 40 billion ($ 5.39 billion).
-
Recently, there have been a growing number of announcements promising easy high returns from cryptocurrency investments, amid concerns about the alleged use of cryptocurrencies to lure investors with misleading claims.
-
Last week, the Finance Standing Committee, chaired by BJP member Jayant Sinha, met with representatives from crypto exchanges, blockchain, and the Crypto Assets Council (BACC), among others, and concluded on that cryptocurrencies shouldn't be banned, but it should be regulated.
-
Private digital currencies have gained popularity in the last decade. However, regulators and governments have been skeptical of these currencies and are concerned about the associated risks.
-
On March 4, 2021, the Supreme Court had set aside an RBI circular of April 6, 2018, prohibiting banks and entities regulated by it from providing services in relation to virtual currencies.
-
Delivering a keynote address at the Sydney Dialogue on November 18, Prime Minister Narendra Modi urged all countries to ensure that cryptocurrency does not "end up in the wrong hands."
-
Currently, El Salvador is the only country that recognizes cryptocurrency as legal tender.
