India proposes a law to ban private cryptocurrencies including bitcoin

By the rumours going on, it seems that India is ready to suppress the current cryptocurrencies in the crypto market for the betterment of the country. The lower house of the Indian Parliament has opened up about banning all the existing private cryptocurrencies used in the country. They are about to introduce a law where even the most popular cryptocurrencies like Bitcoin would get banned. After doing so, the parliament would establish a “facilitative framework” to create a cryptocurrency issued through the Reserve Bank of India.

Everyone saw this coming for the longest time. In 2018, India did not accept digital money or cryptocurrency as legal tender. In the same year, the world’s largest democracy recommended banning the existing digital cash. They were even in talks to punish the violators of this law with prison sentences of up to 10 years.

Reserve Bank of India stood against the currency stating that it’s not real.  Unavailability of a physical counterpart and the money not being stamped were their major concerns. But the Supreme Court of the country ruled out these allegations and allowed to trade in digital currency in 2020. But it was clear that this won’t last too long.

It is not difficult to understand why the Indian government is going to ban private cryptocurrencies. When there is a national cryptocurrency, the influence abroad would be lessened. The prices of cryptocurrencies including Bitcoin is still fluctuating at a rapid rate also they are vulnerable to manipulation.

Last Friday, Bitcoin’s value made a huge jump of 20% and reached $38,566. The reason behind was Elon Musk changing his Twitter bio to #bitcoin.

Other than India, countries like United States, China, Sweden, Japan, Canada, Estonia and etc. have tried to develop their own cryptocurrencies.