No proposal to recognise bitcoin as currency, finance ministry says in Lok Sabha | Latest News India - Hindustan Times
close_game
close_game

No proposal to recognise bitcoin as currency, finance ministry says in Lok Sabha

By | Written by Amit Chaturvedi, Hindustan Times, New Delhi
Nov 29, 2021 01:26 PM IST

The government is expected to bring a bill to regulate cryptocurrency in the winter session of Parliament, which began today. Cryptocurrencies like bitcoin work on blockchain technology - a decentralised ledger of transactions.

The Union finance minister said in Parliament on Monday that central government does not collect any data on bitcoin transactions. It also said that there is no proposal to recognise bitcoin as a currency in the country.

Bitcoin is a type of cryptocurrency, which works on the blockchain technology.(Representative Photo/Reuters)
Bitcoin is a type of cryptocurrency, which works on the blockchain technology.(Representative Photo/Reuters)

The response was given the form of a written reply in the Lok Sabha on a question on cryptocurrency. A legislation seeking regulation of cryptocurrency will be discussed in the winter session of Parliament, which began on Monday.

Hindustan Times - your fastest source for breaking news! Read now.

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, seeks to create a framework to regulate digital to be currency issued by the Reserve Bank of India (RBI).

According to the Lok Sabha website, the bill will also seek to prohibit all private cryptocurrencies in India, barring certain exceptions to promote the underlying technology of cryptocurrency and its use.

Currently, there is no regulation or ban in the country on cryptocurrency.

Prime Minister Narendra Modi had held a meeting earlier this month where he discussed the issue with senior officials. The Standing Committee on Finance, chaired by Bharatiya Janata Party (BJP) leader member Jayant Sinha, met the representatives of crypto exchanges, blockchain and Crypto Assets Council (BACC), among others this month and arrived at a conclusion that cryptocurrencies should not be banned, but regulated.

The Reserve Bank of India has repeatedly reiterated its strong views against cryptocurrencies, saying they pose serious threats to the macroeconomic and financial stability of the country and also doubted the number of investors trading on them and their claimed market value.

The RBI had announced its intent to come out with an official digital currency in the face of the proliferation of cryptocurrencies like bitcoin.

Cryptocurrencies work on blockchain technology - a decentralised ledger of transactions. This isn’t maintained or stored in one place or with any central authority. Instead, it is spread across a network of computers, also known as peer-to-peer networks.

This system is used to authenticate transactions done using crypto coins.

Unveiling Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!

Get Current Updates on India News, Election 2024, Arvind Kejriwal News Live, Bihar Board 10th Result 2024 Live along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, March 29, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On