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India's one official digital currency may be on the way, other cryptocurrencies risk being banned

Indian currency
Indian currency (Image credit: Harish Jonnalagadda / Windows Central)

What you need to know

  • India is set to consider and potentially pass a bill that will end private cryptocurrency activity in the country.
  • In place of private cryptocurrencies, India will have its own official digital tender.
  • This strategy differs greatly from other countries, such as El Salvador, wherein the current global crypto landscape is being embraced as-is.

Cryptocurrency remains a hot button issue for just about anyone with something big at stake when it comes to the shakeup of monetary systems as we know them. Billionaires such as Elon Musk and Mark Cuban have weighed in on the crypto situation, and El Salvador has openly embraced the idea of building an entire Bitcoin City next to a volcano. But India is not nearly as jazzed about the state of crypto, and has a more conservative approach to the subject in the pipeline.

As can be seen in a to-be-considered bill the country may soon pass and adopt, entitled "The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021," private cryptocurrency may soon go the way of the dodo within the country's borders. Here's the bill's described purpose: "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."

In other words, blockchain usage may still be fine, but not if you're in the Ethereum business or have similarly crypto-focused ambitions.

Like India, the U.S. is also taking a cautious approach to crypto, with sanctions targeting the currency type given its convenience for ransomware schemes.

Ransomware aside, crypto has also been a leading cause in the widespread shortage of the best graphics cards — the other major cause being the ongoing global chip shortage.

Robert Carnevale is the News Editor for Windows Central. He's a big fan of Kinect (it lives on in his heart), Sonic the Hedgehog, and the legendary intersection of those two titans, Sonic Free Riders. He is the author of Cold War 2395. Have a useful tip? Send it to robert.carnevale@futurenet.com.

8 Comments
  • I think main issue in India for crypto is money laundering
  • Isn't that an issue just anywhere else?
  • Good luck with forcing people to only use your currency when Crypto is decentralized. Cats out the bag now.
  • Yeah, they'll use crypto for all sorts of transactions. Oh wait.
  • Crypto is useful for a) money laundering and b) inflation hedging, so long as the currency's value is upwards or stable. Since the various cryptocurrencies' value will never actually be stable, it will never be useful as currency. Stability comes from management by humans. Even the gold standard needed humans to manage it. India has problems with both corruption and inflation, so one might think this may help. But the problem with both corruption and inflation is the humans, not the currency. Western countries solved the hyperinflation problem by changing the people in charge. It's a political problem, not a technical one. This is why crypto can't solve countries' various monetary policy issues. It's a pipe dream and always has been. Meanwhile, cynics keep mining and dummies keep buying.
  • It's not banned but Govt.(RBI) will apply tax on cryptocurrecy earnings. All they want to keep an eye on individual's bank balance.
  • “…when it comes to the shakeup of monetary systems as we know them. “ LOL. Good one. Nothing is being “shaken up”, nor does anything need to be.
  • India isn't banning it, its regulating cryptocurrencies. There will be more instances of crypto scams like the millions lost in squid game cryptocurrency otherwise. Big cryptos like bitcoin, ether etc will be strictly regulated and properly taxed and will be allowed freely to operate but other small cryptocuurencies will be limited.