India prepares very strong regulation for cryptocurrencies through a bill that seeks to ban all private cryptocurrencies.
The measure is based on certain recommendations from the central bank of the Asian country. According to Prime Minister Narendra Modi, these raise serious concerns regarding macroeconomics and financial stability, as well as having negative effects on youth.
Although India’s plan is to ban private cryptocurrencies – such as bitcoin and ethereum, to mention the most widespread – and their transactions, the project also seeks to create an electronic currency of the country that is regulated by the state. The latter as a way to “promote the technology behind bitcoin, in addition to its various applications.”
Until now, India has been on the list of countries that allow the use of cryptocurrencies on its territory, but this could change soon, if the bill is finally signed into law. Thus, India would join countries such as China, Bolivia or Egypt, where cryptocurrencies are prohibited.
Only El Salvador seems to have taken a step forward in this regard since the Government of Nayib Bukele made bitcoin a legal currency. This includes the installation of special ATMs, as well as facilities for foreigners who want to move to the country and invest.
Bukele’s most recent idea is in the construction of a “bitcoin city”, whose construction will begin in 2022 near the Conchagua volcano; It will be friendly to the environment thanks to the geothermal energy in the area.