The Cryptocurrency & Regulation of Official Digital Currency Bill, 2021 will seek to create a facilitative framework for creation of official digital currency to be issued by the Reserve Bank of India (RBI).
The Centre also said that all private cryptocurrencies will be banned in India. However, it will allow certain exceptions to promote the underlying technology of cryptocurrency and its uses.
Last week, Prime Minister Narendra Modi had urged cooperation between the world’s democracies to ensure cryptocurrencies like Bitcoin do not “end up in the wrong hands”.
He had also chaired a meeting to discuss the future of cryptocurrencies amid concerns that unregulated crypto markets could become avenues for money laundering and terror financing.
The high-level meeting was held after RBI governor Shaktikanta Das sounded an alarm on cryptocurrencies, cautioning investors on the potential pitfalls of the digital currency.
Das had reiterated his views against allowing cryptocurrencies saying they are serious threat to any financial system since they are unregulated by central banks.
The RBI had announced its intent to come out with an official digital currency, in the face of proliferation of cryptocurrencies like Bitcoin about which the central bank has had many concerns.
The winter session of the Parliament is set to commence from November 29.
In all, 26 bills will be listed at the Parliament, including that on cryptocurrency and also for repealing the three farm laws.