No Plans Of A Cryptocurrency Regulated By RBI, They Are Unregulated, Says Government

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No plans of a cryptocurrency regulated by RBI, they are unregulated, says government

The government is not planning to introduce a cryptocurrency that the Reserve Bank of India will regulate, said Pankaj Chaudhary, Minister of State For Finance.

"Currently, cryptocurrencies are unregulated in India," said Mr Chaudhary in a written reply to a question raised in the Rajya Sabha.

"The RBI does not issue a cryptocurrency. Traditional paper currency is a legal tender issued by the RBI in terms of provisions of the RBI Act, 1994. A digital version of traditional paper currency is called Central Bank Digital Currency (CBDC)," he added, in response to a query by Member of Parliament Sanjay Singh.

Meanwhile, there is a bill currently pending on cryptocurrencies.

The Cryptocurrency and Regulation of Official Digital Currency Bill in its current form aim to ban all private coins as a payment method in India, barring a few to promote underlying technologies, even as it allows the RBI to set up an official digital currency.

But the government had previously said it aims to promote underlying technologies such as blockchain, which is why there has been a delay with the bill.

Industry experts opine that reforms to the bill with more comprehensive consultations can take India to the forefront of blockchain tech.

The bill has been in the works for well over a year. The legislation had been listed for the winter session, which ended on December 23, 2021, but was not introduced. The cryptocurrency legislation was also listed in the budget and monsoon sessions earlier in 2021.

Finance Minister Nirmala Sitharaman stated that the bill's details would be made public once the union cabinet approves it.