Budget 2021 Expectations on Cryptocurrencies in India: Government May Ban Private Players Like Bitcoin and Dogecoin; RBI to Come up With Its Own Digital Currency

New Delhi, January 30: Expectations of all sectors are comparatively higher from Union Budget 2021 as this will be first after the country reeled under the havoc wrecked by the COVID-19 pandemic. The pandemic caused massive losses to businesses and almost all sectors expect a sooner recovery. The Union Budget 2021 will be presented by Finance Minister Nirmala Sitharaman on February 1, 2021. As far as Budget 2021 expectations on cryptocurrencies in India is concerned, the government is likely to introduce a bill that bans the trading in cryptocurrencies in the country. This means the government aims to ban private players like Bitcoins and Dogecoins. Dogecoin Funny Memes and Jokes Soar After Reddit Frenzy Pumps Up Meme-Based Crytocurrency by Over 800%, Hilarious Reactions Flood Twitter.

The government has lined up an intensive legislative agenda with over 20 bills for the Budget Session of Parliament which began on January 29. Among the bills lined up for consideration during the Budget session of Parliament include ban on private cryptocurrencies. The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 will create a facilitative framework for creation of the official digital currency to be issued by the RBI. The Bill 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. Bitcoin Crosses $25,000-Mark; Cryptocurrency Rallied 224% in 2020.

Earlier this week, there were reports that the RBI was exploring the need for a digital version of fiat currency. The cryptocurrency stakeholders have called the move a step in the right direction towards strengthening the fintech ecosystem in the country. In a booklet titled “Payment and Settlement Systems in India” that was released this week, the RBI said, “Private digital currencies (PDCs) / virtual currencies (VCs) / crypto currencies (CCs) have gained popularity in recent years. In India, the regulators and governments have been sceptical about these currencies and are apprehensive about the associated risks”.

(The above story first appeared on LatestLY on Jan 30, 2021 09:34 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).