homecryptocurrency NewsCentre unlikely to ban Bitcoin, may not make it legal tender either: Report

Centre unlikely to ban Bitcoin, may not make it legal tender either: Report

Centre unlikely to ban Bitcoin, may not make it legal tender either: Report
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By CNBCTV18.com Nov 8, 2021 1:31:38 PM IST (Updated)

The Centre is not planning to ban Bitcoin in view of large investments in such instruments by Indians. However, a final call on the contours of the law will be taken shortly, a report said.

Ahead of the Parliament's winter session — when legislation on digital currencies is expected —the Centre is unlikely to take a tough stance on cryptocurrency, a report said. However, the government may not recognise cryptocurrency as legal tenders either.

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According to an Economic Times report, the Centre is not planning to ban digital currency in view of large investments by Indians. "A balance has to be found ... A middle path that balances the concerns of all stakeholders is more likely," a government source told the publication.
A final call on the contours of the law will be taken shortly, the sources said, adding the government wants to roll out a law that can be implemented effectively. The Centre also wants the law to take advantage of technological advancements in digital space.
Recently, the policymakers have been considering the pros and cons of cryptocurrencies, taking in RBI's viewpoint, and analysing the laws adopted by other countries.


"A lot of negotiations and discussions are happening around the cryptocurrency with the Reserve Bank of India. RBI will be taking a call on what kind of unofficial cryptocurrency will have to be planned and how it has to be regulated. However, we want to make sure that there is a window available for all kinds of experiments which will have to take place in the crypto world," Finance Minister Nirmala Sitharaman had told CNBC-TV18 in March 2021.
During the Budget session this year, Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 was to be tabled, but it was held back as it didn't address all concerns. Later, a ministerial panel was formed to study the rules around such currencies.
Sitharaman had also said a blanket ban on cryptos is off-table and said the government will take a cautious approach. She has said that the central bank coming up with a "legitimate" cryptocurrency is also a possibility.
"There will be a very calibrated position taken. A lot of mixed messages are coming from across the world. The world is moving fast with technology, we cannot pretend that we don't want it," she had said.
Earlier this year, China's central bank had made all transactions of crypto-currencies illegal, effectively banning digital tokens like Bitcoin, Dogecoin, and others. It said that cryptocurrencies are "a volatile, speculative investment at best and a way to launder money at worst".
At 13:25, Bitcoin was trading over 6 percent higher at $65,800, a level it had last touched on October 20.


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