India’s cryptocurrency bill does not intend to push them – Cryptogaceta – Central Valley Business Journal

India is a particular country in many ways, but economically and politically it is much more so. We have seen this at different times in history, but with the arrival of cryptocurrencies, their perspective on the security of transactions and the protection of the traditional structure offered by banks has been strengthened.

For the past few days there has been a lot of talk about the upcoming regulatory plans in India. In accordance with this, the government intends to create regulations related to cryptocurrencies, the issue is that its objectives are not to promote the use of these assets or to bet on digital technology in the economy. It seems that the plan is much more restrictive and against cryptocurrencies.

Recently, the Parliament’s Ministry of Finance gave a session in which the topic of cryptocurrencies and regulations was discussed. There it was commented that cryptocurrencies were not being regulated in the country and that this should be solved. Something like cryptocurrencies that can operate freely in India and have the ability to endanger users will have to be restricted and controlled.

The cryptocurrency ban is a fact

That India is planning to apply restrictive regulations to cryptocurrencies is nothing new. This is not the first time that something like this has happened, in the past there have been attempts to partially ban twice, but finally the possibility of using this asset class has been returned to users.

To be more exact, this is not the first time that something related to the cryptocurrency ban has been discussed. Earlier this year there was speculation that India would become the first country in the world to ban cryptocurrencies entirely. This at that time was denied and the country that prohibited the use of cryptocurrencies was China.

It seems that India is willing to follow the example of China that, according to political standards, the measure has had a very good effect. Until now, it is expected that a draft law will be adopted that regulates digital currencies. This will be done during the next session of parliament and crypto investors are very concerned.

A government representative recently assured that it is planned to ban each and every private cryptocurrency, with only a few exceptions. At this time, it is not known what the exceptions will be or how serious the changes will be in terms of cryptocurrencies. But it seems that it will be something very similar to China.

The reason why there are constant comparisons between China and India is the next project to be developed. Although China argues that the reason cryptocurrencies have been banned is to protect citizens, we all know that the RMB Digital project has been in the works for a long time and is about to come out. For obvious reasons, Chinese regulators do not want competition to make their project the only and most successful, and this looks a bit like the Indian plan.

According to what was commented by this same informant, what is intended with the next regulatory framework is to create a plan for the adoption of the country’s digital currency. This will be a cryptocurrency supported by the central bank and that will allow users to make transactions much faster, safer and controlled by the government, unlike private cryptocurrencies.

The development of the Reserve Bank’s digital currency is approaching

As we have explained before, India’s regulatory intent is not fortuitous. The Government of India received a proposal from the Reserve Bank in October this year for a new project. The initial phase of this project is an amendment that will be applied to a bank law dating from 1934 and that will allow the development of the digital currency to begin.

Taking into account what regulators have commented, this proposal aims to improve the reach of the Reserve Bank of India. It seems that India is betting on technology, but this cannot be done if it has a great enemy in the market, which in this case is bitcoin and all private cryptocurrencies.

What is planned is that the development of this cryptocurrency will provide users with a much more solid payment option, with higher standards of efficiency and reliability, as well as being protected by the law of the country. This could solve some problems related to the security of cryptocurrencies, but we must not forget that investors are being deprived of the opportunity to put their money where they want.

Source: Finance Sina

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