The Indian government will introduce a law to ban private cryptocurrencies and create a framework for a central bank-controlled digital currency, Parliament announced on Tuesday.
The law proposes to “seek to ban all private cryptocurrencies in India,” an announcement that takes place after the prime minister Narendra Modi will present these virtual currencies on Monday as a risk to “harm our young people” if they fall into “the wrong hands.”
In September, China banned cryptocurrency transactions.
In India, the market for virtual currencies soared after the Supreme Court’s decision to back down on a similar ban in April 2020, with a progression of more than 600% in the last 12 months, according to the specialized cabinet Chainalysis.
It is estimated that in this country of 1.3 billion people, there are between 15 million and 100 million of them who have cryptocurrencies.
The Indian central bank announced in June that it was working to introduce its own virtual currency, starting at the end of the year, while expressing its concern about private platforms, such as bitcoin, ethereum or others.
The law, which is due to be presented to parliament starting next week, will allow exceptions, such as promoting the underlying technology “blockchain,” the parliament note said, without elaborating.
Reference-www.eleconomista.com.mx