Indian Government is set to prohibit all private cryptocurrencies in India, providing exceptions to promote cryptocurrency's underlying technology and its uses.
New Delhi: National co-convenor of Swadeshi Jagran Manch (SJM), Ashwani Mahajan, on Wednesday (November 24) said that the Central Government has made it clear that they are not going to ban cryptocurrency completely, but they are intending to promote technology by giving our exceptions.
"The government has made it very clear that they are not going to ban cryptocurrency totally. They are saying there can be exceptions for promoting the technology. Right now it is not clear what the scenario will be," Mahajan told ANI. His statement comes after the government plans to introduce a bill to ban all private cryptocurrencies in India while providing certain exceptions to promote cryptocurrency's underlying technology.
The 'Cryptocurrency and Regulation of Official Digital Currency Bill, 2021' is among 26 new bills on the government's agenda for the winter session of Parliament beginning November 29.
It also seeks to prohibit all private cryptocurrencies in India. However, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.
"It is not very clear what government is going to do about it. Since the advent of cryptocurrency, there has been a growing craze among youth about crypto, especially about bitcoin. They were thinking that they will earn more, so the need to ban it was being foiled," Mahajan said.
He further said that cryptocurrency should be regulated.
"There should not be any ponzi scheme where people lose their money. There is every chance of lossing money in cryptocurrency because who has created nobody knows. People are unaware of where the money comes from and where it goes. It is the duty of the government to regulate it," he added.
"We elect Parliament to make laws for betterment of the people and it is the duty of the Parliament and the government at large to legislate on important issues. Presently, cryptocurrency is an important issue. Therefore, I believe that this bill will initiate a debate in the Parliament on what should be the future of cryptocurrency," he noted.
Reiterating the need for a debate on cryptocurrency, Mahajan said, "If the public at large also believes that cryptocurrency should be banned then the government can do so."
"The other part of the proposal in this bill is that RBI will bring its own digital currency. I think it's the most welcome step because RBI would be a pioneer in the world to create such as a digital instrument. Moreover, will be supported by the Central Bank. In this manner, to some extent, we will be able to improve our perception of the world," he said.
Mahajan also said, "Our balance of payments has decreased. If the demand for cryptocurrency is increasing, I think the country at large will get benefit in a big way."
From a larger perspective, he said that he does not see any benefit to society from cryptocurrency, but the government will be benefitted.