Despite all eyes set on India’s much-anticipated cryptocurrency bill, it is unlikely that it will be tabled during the current session of parliament, since the government has not yet finalized the specifics of the legislation.
The government of Prime Minister Narendra Modi wants further talks on the topic before adopting laws to manage digital currencies, but there isn’t enough time left before the current session ends on December 23, according to persons close to the matter, reported Bloomberg.
Whatsmore, the individuals asked not to be named since the administrative discussions are private but did however reveal that, apparently, the cabinet hasn’t approved the proposed legislation.
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Crypto bill removed from schedule
It’s worth mentioning that the cryptocurrency bill has been removed from the list of business scheduled for the last week of the parliament’s session, going off of the timetable posted on the parliament’s website. During times when parliament is not in session, the government may nevertheless enact laws by issuing an ordinance.
A description on the parliament’s website published last month, stated that the bill intends to assist the central bank in the creation of an official digital currency. Although the legislation aimed to:
“Prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses,” the text read.
India continues difficult relationship with crypto
As one of the world’s fastest-growing cryptocurrency marketplaces, India has had its fair share of ups and downs with digital currencies. In 2018, the central bank essentially outlawed cryptocurrency transactions, but the Supreme Court ended up overturning that decision.
Since then, there has been an increase in calls for stronger restrictions, with growing fear that an unregulated environment may encourage more domestic household savings to be placed in the volatile investments.
Indeed, the Reserve Bank of India (RBI) had informed its central board that it supports a total ban on cryptocurrencies, at the central bank’s board meeting on Friday, December 17.
However, Indian millennials are increasingly opting for digital assets over traditional investment means like stock trading. Data provided by Indian crypto trading app CoinSwitch Kuber reveals that among its 11 million customers, between 25-55% of the young users are outside big cities like New Delhi or Mumbai.
Finally, according to Finance Minister Nirmala Sitharaman, the latest bill has been modified in order to bring it more up-to-date with current legislation. While, in contrast to the Reserve Bank’s desire for a ban on cryptocurrencies, the government is considering the possibility of enabling cryptocurrencies to be used as a financial asset.
