After a first attempt at a ban in 2018, the Indian government will introduce legislation to ban private cryptocurrencies. Also in the firing line is the acceleration of its Central Bank Digital Currency (CBDC). The ban is likely to impact millions of young Indians who have jumped into the sector.

With more than 100 million Indians using virtual currencies, placing India fourth in terms of adoption behind the United States (source: investment portal BrokerChooser), the government will introduce legislation to ban these private cryptocurrencies and create a framework, Parliament announced in the end of November. The state of 1.3 billion inhabitants is thus following in the footsteps of China, where the central bank has declared illegal all activities around these assets, which are based on the decentralized and unmediated protocol of the blockchain.

In the wake of this bill, explains the media La Tribune, India wants to fast-track its own digital currency controlled by the central bank (CBDC). Announced earlier this year, the law is to set "a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India (RBI)."

This time, the proposed law "seeks to ban all private crypto-currencies in India, however, it allows certain exceptions to promote the underlying technology of crypto-currencies and its uses," according to Parliament's bulletin for its upcoming activities.

In 2018, the Indian central bank had already banned cryptocurrency transactions, such as bitcoin, within three months. But in March 2020, the Supreme Court had allowed banks to handle cryptocurrency transactions by exchanges and traders, overturning the ban. Since then, the sector has boomed.

Publié le 13 décembre 2021