Cabinet Likely To Discuss Cryptocurrency Bill Today: Report

Apart from the regulatory framework, the bill seeks to prohibit all private cryptocurrencies in India but allows certain exceptions to promote the underlying technology of cryptocurrency and its uses

Representation Image (File Photo)

New Delhi: The Cabinet is likely to discuss "The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021" at a meeting on Wednesday. The meeting is scheduled to take place at 1 pm, according to the news agency ANI report. On Tuesday, the finance ministry informed the Lok Sabha that a Bill on cryptocurrency is under final consideration of the Cabinet.

Earlier, the government said that it aims to table a reworked bill on cryptocurrency in the ongoing Winter Session of Parliament after Cabinet approves it. The bill may later be referred to the Standing Committee for further deliberations, according to ANI sources.

What is the cryptocurrency bill aimed at?

“A bill on Cryptocurrency and Regulation of Official Digital Currency for introduction in the Lok Sabha has been included in the Lok Sabha Bulletin-Part II as part of government business expected to be taken up,” finance minister Nirmala Sitharaman said in a written reply to the House on November 30.

The Bill seeks "to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India".

Apart from the regulatory framework, the bill seeks to prohibit all private cryptocurrencies in India but allows certain exceptions to promote the underlying technology of cryptocurrency and its uses.

The Bill was among the 26 new Bills on the agenda of the government for introduction and passage during the winter session which began on November 29.

The central bank has also plans to introduce an official digital currency. On March 4, 2020, Supreme Court set aside an RBI circular of April 6, 2018, prohibiting banks and entities regulated by it from providing services in relation to virtual currencies.

According to reports, officials in a meeting with PM Modi said attempts to mislead the youth through over-promising, non-transparent advertising must be stopped and unregulated crypto markets cannot be allowed to become avenues for money laundering and terror financing.