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India to ban private cryptocurrencies

Christian Fernsby |
India is all set to ban private cryptocurrencies with the government announcing this week that it will bring forward legislation to regulate virtual currencies as the South Asian country's central bank plans to launch its own digital currency.

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According to a parliamentary bulletin, "The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021" will be introduced by the government during the winter session of the parliament that is scheduled to begin later this month.

The proposed bill aims "to create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India (RBI)," reads the bulletin, adding: "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."

The development comes after Indian Prime Minister Narendra Modi last week warned that cryptocurrencies such as Bitcoin present a risk to the younger generation.

"It is important that all democratic nations work together on this and ensure it (cryptocurrency) does not end up in wrong hands, which can spoil our youth," Modi had said last Thursday at an economic forum in New Delhi.

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