The government on Friday came up with a bill in which it proposed the banning of all private cryptocurrencies in India. It includes currencies like Bitcoin, ether, and ripple. These are in the legislative order for the business for the budget session in the 17th Lok Sabha.
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 also came up saying that certain exceptions are going to get promoted with the underlying technology of this cryptocurrency.
Sathvik Vishwanath, co-founder, and chief executive officer of Unocoin, said, “Due to the fact that a cryptocurrency draft bill leading to its ban has got listed in the items for discussion during this budget session, the entire industry is in panic. We have seen some panic selling as well, which has led to reduced prices of cryptocurrencies. Bitcoin and ether, which used to trade at 10% premium compared with global markets, are now trading at 20% discount.”
As the expert says, the cryptocurrency couldn’t see any of the notable recoveries with the budget speech.
Bitcoin had been trading marginally higher on Tuesday, but it hit a high and low of $34,715.66 and $33,150.73 in the last 24 hours. In the previous year, the Supreme Court of India came up with the Reserve Bank of India’s (RBI) ban on crypto-related payments.
The industry experts are also hoping for the support of the government. Viswanath said, “The contents of the draft bill remain unknown, which is also adding to the panic of the community. India is known for following the footsteps of developed countries when it comes to technical innovation, and it is the time for governments and regulators to look at how this has played out there more closely before making knee-jerk reactions.”
Rahul Pagidipati, chief executive officer at ZebPay, also said that it is a proud moment that RBI is exploring the digital rupees on the built of blockchain. Blockchain technology is not lowering the cost, but it is improving the accounts being an immutable ledger. Thus, the digital government currency must safely include all the aspects of this new technology to bring innovation and tax revenue.