In the past, the price of bitcoin has reached a high level in the international market. But the Indian government is going to clamp down on cryptocurrency. Finance Minister Nirmala Sitharaman recently made it clear that a high-level committee has suggested banning all virtual currencies in India. He said that all necessary steps will be taken to eliminate crypto assets from illegal activities and payment systems. Hence, there has been deep apprehension among investors that the government may decide to ban cryptocurrencies such as Bitcoin. According to a rough estimate, between 1.5 and 20 million cryptocurrencies have been purchased in the country.
The central bank can bring digital currency
Earlier, Reserve Bank of India (RBI) Deputy Governor BP Kanungo had said that RBI’s internal committee is looking into ways of issuing the central bank’s digital currency and will give its recommendation in this regard soon. RBI is trying to find out what benefits will come from bringing digital currency and how useful it will be.
In response to a question in the Rajya Sabha, Union Finance Minister Nirmala Sitharaman said that a high-level committee has suggested banning all private cryptocurrencies in India. The committee has said that only e-currency issued by the government should be approved in India.
What is cryptocurrency?
Cryptocurrency is a currency that you cannot see. In simple words, you can call it Digital Rupee. No bank issues cryptocurrency. Only those who issue it control it. It is used in the digital world itself.
Reserve Bank of India banned in 2018
Explain that the Reserve Bank of India had banned the cryptocurrency business in the year 2018 by issuing a circular. But in March 2020, the Supreme Court approved to trade with virtual currency, also known as cryptocurrency. Following this court order, transactions can be done legally in virtual currencies such as Bitcoin.
10 years in jail for buying and selling cryptocurrencies in India
The ban on cryptocurrency and the drafts of the Official Digital Currency Bill, 2019, proposed that those buying and selling cryptocurrencies in the country would get a 10-year prison sentence. According to the draft, all those who will create a cryptocurrency, sell it, keep cryptocurrency, send it to someone, or deal in cryptocurrency. Those convicted in all these cases received jail terms of up to 10 years. But now the Supreme Court has lifted this ban.