Center Moves To Ban Cryptocurrency, Price Drop: 10 Points

The center is likely to introduce a bill banning all cryptocurrencies in India with a few exceptions in the Winter Parliament and will pave the way for digital currency regulation issued by the Reserve Bank of India (RBI). The
Center will likely introduce a bill banning all cryptocurrencies in India with a few exceptions in the Winter Parliament and will create a framework for regulating digital currencies issued by the Reserve Bank of India (RBI). As a result, all major digital currencies fell by more than about 15%, Bitcoin by about 18.53%, Ethereum by 15.58% and Tether by 18.29%.
Here is a 10-point cheat sheet for this big story.
1           The 2021 Cryptocurrency and Official Digital Currency Regulation Act will be listed on Lok Sabha during the winter session scheduled to begin on November 29th.
2           The bill aims to “create favorable conditions for the creation of an official digital currency to be issued by the RBI”. It also aims to ban all private cryptocurrencies in India, but allows certain exceptions to promote basic cryptocurrency technology and use.
3            The central bank has expressed “serious concerns” about private cryptocurrencies. Bitcoin, the world’s largest cryptocurrency, is valued at about $60,000 and has more than doubled in price since the beginning of this year, attracting local investors.

4            According to industry estimates, there are between 15 and 20 million cryptocurrency investors in India, with a total cryptocurrency holding of around 40 billion ($5.39 billion).

5             Recently, there has been a growing number of advertisements promising easy and high return on investment in cryptocurrencies, and concerns are growing that cryptocurrencies are being used to attract investors through misleading descriptions.

6              Last week, the Finance Standing Committee, chaired by BJP member Jayant Sinha, met with representatives of crypto exchanges, blockchains and crypto assets committee (BACC) to conclude that cryptocurrencies should not be banned. But it has to be regulated.

7               Private digital currencies have gained popularity over the past decade or so. However, regulators and governments are skeptical of these currencies and are wary of the risks associated with them.

8                On March 4, 2021, the Supreme Court overturned the RBI Bulletin on April 6, 2018, banning banks and regulated entities from providing services related to virtual currencies.

9                 In a keynote speech at the Sydney Dialogue on 18 November, Prime Minister Narendra Modi urged all countries to ensure that cryptocurrencies do not “get into the wrong hands”.

10               El Salvador is currently the only country that accepts cryptocurrency as a fiat currency.