India Proposes Bill to Ban “Private” Crypto’s and Introduce a CBDC, But No Need to Panic
The proposed bill is yet to be presented, and WazirX CEO says they have “been preparing for this” and “pushing for regulations.”
The Indian government is now planning to introduce a bill to ban all private cryptocurrencies and launch its own central bank digital currencies (CBDC).
“To create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency (sic) and its uses,” reads the screenshot shared by Crypto Kanoon on Twitter.
However, this isn't the first time that there are talks of such a bill to be proposed in India or in the crypto space.
Not to mention, the market has been seeing a lot of FUD in the ongoing bull market — China and Tether FUD has already been renewed.
“Let’s not be afraid. We’ve been preparing for this. We’ve been pushing for regulations. I believe this bill will be referred to a standing committee for further deliberations,” tweeted Nischal Shetty, founder, and CEO of Indian exchange WazirX, which is acquired by leading spot exchange Binance.
It's not that attempts were not made in the past by super powers of the world to Ban crypto.
All those attempts failed.
We just had to learn lesson from that.
— Crypto Kanoon (@cryptokanoon) January 30, 2021
When it comes to a CBDC, central banks of several countries have taken steps towards this, and Shetty believes it a good thing, but the scary part is banning private cryptocurrencies, which he believes are expected to be in the context of crypto being used as a “currency.”
“Crypto as an asset/utility would be ok in India. It would also be ok to trade these assets. There are millions of Indians who own crypto assets. Billions of dollars of people’s money and wealth are at stake here. I’m sure the Government understands that” he said.
Over 7 Million crypto holders in India
Over $1 Billion+ crypto assets owned by Indians
Will Government ban & erase all that wealth overnight?
I don’t think so. Government will involve us, the industry, in further discussions and we’ll present our points 💪#IndiaWantsCrypto
— Nischal (WazirX) ⚡️ (@NischalShetty) January 30, 2021
He further goes on to explain that there is no such thing as a “private cryptocurrency” because, by their nature, they are decentralized and public.
“Attacking digital assets by confusing them to be INR competitors wud be amateurish,” he said.
Being a large country, India has the second-largest population in the world after China; the WazirX CEO expects the government to understand the underlying terminologies before presenting any related bills and not be in a rush and destroy the general public’s value by doing it wrong.
Shetty is rather “looking forward to a healthy debate if this is presented” and expects this to be a precursor to positive crypto regulations.
“Wrong or hasty regulations will set us back by a decade. Right regulations will catapult India to the forefront of this technology,” Shetty said.