The Indian government is preparing a new law that Prohibition of all private cryptocurrenciessuch as Bitcoin, Ethereum and many others to pave the way for the creation of its own cryptocurrency controlled by the Central Bank of the Pías, the Reserve Bank of India.
India assures that the measure will ensure the stability of its own financial system
According to the document presented on the Indian Parliament’s website, all digital currencies would be banned in India, although some exceptions would be allowed for the time being, such as the technology on which they are developed – blockchain – and certain regulated uses.
It’s not the first time the country has proposed banning all cryptocurrencies. In 2018, a group of government advisors recommended the ban and even suggested sentences of up to 10 years in prison for those who failed to comply with the ban.
It was also at this time that the government was recommended Creation of an Indian digital currency and the groundwork for its development was laid, although the project was finally postponed following complaints from several stock exchange houses and investors to the Supreme Court of India who agreed with them.
Now the Reserve Bank of India appears to be the main sponsor of the new move, which it sees as a means of securing the country’s financial system. The institution advises that Bitcoin and other digital currencies cannot be treated as real currencies because they neither physically exist nor have been minted by the government.
The bank is also concerned about the existence of some local companies doing business in these cryptocurrencies. For their part, the country’s major stock exchange and investment houses have indicated that they hope that the Indian Parliament will seek their opinions and listen to all parties involved before a decision is made.
India wouldn’t be the first country in the world to introduce its own cryptocurrency. Others like Venezuela have had their own digital currency, the petro, for years.