Saturday, December 4

India can ban Bitcoin and launch a national digital currency

An old bill has just moved forward in the winter session of India’s parliament on Tuesday (23). Among the approximately twenty agendas is the regulation of cryptocurrencies, in this case the prohibition of all private cryptocurrencies, they will begin to be voted on next Monday (29).

His main motivation is to try to end competition with India’s future CBDC digital rupee, leaving Indians with no choice in what kind of money to use.

If the law is passed, the country could fail to generate income and jobs, just as China did by banning both cryptocurrencies and mining them this year.

Private cryptocurrency regulation project

The bill entitled ‘Cryptocurrency and Official Digital Currency Regulation Bill 2021’ aims to ban all private cryptocurrencies in India. Although the text does not make the definition of private clear, it is possible that Bitcoin fits here, as it is not a state currency.

“To create an enabling framework for the creation of the official digital currency to be issued by the Reserve Bank of India. The bill also aims to ban all private cryptocurrencies in India; however, it allows for certain exceptions to promote the underlying cryptocurrency technology and its uses.”

Bill in India to ban all private cryptocurrencies. Source: Government of India.

Thus, it is expected that the Indian government will try to ban cryptocurrencies in the same way as China if the law is passed. Allowing only the future CBDC (digital currency of the central bank) of the country to be used, a true monopoly that the BTC has been trying to overthrow for more than 10 years.

Shot in the foot

If this law is passed, and Bitcoin is really categorized as a private currency, this can be a big loss for the country and especially for its citizens.

First, it is important to remember that several countries are fighting to attract entrepreneurs in the cryptocurrency sector to generate employment and income for the place.

As an example, we have the Citi bank, which is hiring 100 people in the cryptocurrency area, as well as the construction of Bitcoin City by El Salvador and several US mayors looking to turn their cities into technology centers.

Finally, the one who suffers most from this is the citizen, obviously. While the dollar has been suffering from inflation, the Indian rupee has already accumulated a drop of almost 50% against the USD in recent years. In other words, your currency only devalues ​​and the creation of a CBDC will not change that.

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