India: Proposal to ban cryptocurrencies and create official digital currency

The Indian government is planning to introduce a law to ban private cryptocurrencies such as bitcoin, while providing the Reserve Bank of India with the necessary legal powers to develop a central bank-backed digital currency.

The legislation is listed for debate in the current budgetary session in parliament and seeks to ‘create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India. The bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.’