India Proposes Crypto Ban and E-Rupee Plans

Indian authorities plan to propose a new law to ban private cryptocurrencies and implement a framework for an official central bank digital currency.

India will seek «to prohibit all private cryptocurrencies in India», according to a legislative agenda published by the lower house’s website on Friday last wee, with exceptions for certain purposes such as the promotion of the underlying technology and its uses.

In addition, lawmakers will look to «create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India (RBI).

Not unlike other central banks, the RBI has been accelerating efforts to launch its own electronic money and tighten regulation against cryptocurrencies. It first issued an order in April 2018 to cut ties with all individuals or businesses dealing in digital currencies like Bitcoins within three months.

But India’s Supreme Court subsequently overturned the ban by allowing banks to handle crypto transactions from exchanges and traders.

The pushback reflects broader shifts in sentiments worldwide, particularly amongst banks that have been demonstrating increasing openness to cryptocurrencies.