In the past, bitcoin prices have reached high levels in the international market. However, the Indian government is going to block cryptocurrency. Finance Minister Nirmala Sitharaman recently made it clear that a high-level committee has recommended banning all virtual currencies in India.
He said all necessary steps would be taken to eradicate crypto assets from illegal activities and payment arrangements. Thus, there are deep concerns among investors that the government may decide to ban cryptocurrencies such as Bitcoin. Roughly 1.5 to 20 million cryptocurrencies have been bought in the country.
The central bank can bring in digital currency
Earlier, Reserve Bank of India (RBI) Deputy Governor BP Kanungo said that the RBI’s internal committee was looking into ways to issue digital currency to the central bank and would make its recommendations soon. The RBI is trying to figure out what the benefits of bringing digital currency will be and how effective it will be.
In response to a question in the Rajya Sabha, Union Finance Minister Nirmala Sitharaman said a high-level committee had recommended banning all private cryptocurrencies in India. The committee 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 offers cryptocurrency. Only those who issue control it. It is used in the digital world itself.
The Reserve Bank of India has banned in 2018
Explain that the Reserve Bank of India issued a notification in 2018 banning cryptocurrency trading. However, in March 2020, the Supreme Court approved trading in virtual currency, also known as cryptocurrency. Following this court order, transactions can be made legally in virtual currencies like Bitcoin.
Jailed for 10 years for buying and selling cryptocurrency in India
The ban on cryptocurrencies and the draft of the Official Digital Currency Bill, 2016 proposed that those who buy and sell cryptocurrencies in the country could face up to ten years in prison. According to the draft, those who create, sell, hold cryptocurrencies, send or transact in cryptocurrencies all have been sentenced to 10 years in prison. But now the Supreme Court has lifted the ban.