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India Proposes Law Creating Official Digital Currency

January 31, 2021
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The Indian government is putting together a legal framework that would lead to the creation of an official digital currency to be issued by the Reserve Bank of India.

With this move, the new bill seeks to prohibit all private cryptocurrencies in the country- this was revealed during the budget session of parliament that began Friday.

Extra details also indicate that the proposed law will allow certain exceptions to promote block-chain, the underlying technology of cryptocurrency and its uses, according to a bulletin of the lower house of India’s  parliament.

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The central bank of India is looking into the need for a digital version of the fiat currency and how to implement it.

India’s monetary policy regulator had in 2018 banned crypto transactions after a string of frauds in the months following Prime Minister Narendra Modi’s sudden decision to ban 80% of the nation’s currency.

Cryptocurrency exchanges responded with a lawsuit in the Supreme Court in September and won respite in March 2020.

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