Law and Legislation

Cryptocurrency & Regulation Of Official Digital Currency Bill 2021 – India.

The Cryptocurrency and Regulation of Official Digital Currency Bill 2021 aim to outlaw all but a few private cryptocurrencies in order to encourage underlying technology while allowing the Reserve Bank of India to issue an official digital currency.

Finance Minister Nirmala Sitharaman said Monday in response to a question in the Lok Sabha that the government has no plans to recognize Bitcoin as a currency in the nation. In addition, she stated in the Lok Sabha that the government does not keep track of Bitcoin transactions.

The news comes as the government plans to present the Cryptocurrency and Regulation of Official Digital Currency Bill 2021 during Parliament’s current Winter Session. The law wants to ban all but a few private cryptocurrencies, allowing the RBI to build an official digital currency while also encouraging the technology that underpins it.

Thirumaavalavan Thol, a member of Parliament, asked the Ministry of Finance if the government is aware of the cryptocurrencies traded in India and if cryptocurrency trading is permitted in the country. He also wanted to know if the Indian government has approved bitcoin exchanges as a legitimate company.

It’s important recalling that Bitcoin was created by an anonymous group of programmers in 2008. Because the digital currency is not connected to a bank or government, users may spend money anonymously. Users who donate processing power to verify the transactions of other users “mine” the currency. Bitcoins are used to reimburse them

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