After China, India might be the next country to ban cryptocurrencies. The Indian government is currently preparing legislation that will prohibit private cryptocurrencies. On the other hand, the Indian bank is preparing to launch the official digital currency.
Central Bank Made Crypto Illegal
The current China crypto ban has affected India, as the country decided to follow in its footsteps.
However, “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021,” as the document is called, still leaves some space for the use of cryptocurrencies.
Unfortunately, it aims to ban all private cryptocurrencies and create a framework for the official digital cryptocurrency to be issued by the Reserve Bank of India.
The only thing that the bill allows is specific cases of promoting the technology of cryptocurrency and its uses.
India’s prime minister, Narendra Modi, stated that cryptocurrencies might “spoil the youth” or represent a serious concern for India’s macroeconomic and financial stability.
This move generated a panic on the crypto market and caused a sell-off. While India’s cryptocurrency ban didn’t result in precisely the same effect as the ban in China, it still shows significant issues with the use of cryptocurrency in the real world.
On the other hand, El Salvador plans to promote Bitcoin and cryptocurrency investments by creating a Bitcoin city.
It remains to be seen whether Indian citizens will be allowed to invest in ICOs or any other form of cryptocurrency besides the official coins.