New Delhi: A day after it emerged that the government could to bring a bill in the winter session of Parliament to bar all but a few private cryptocurrencies in India, the values of all major digital currencies saw a dip on Wednedsay.
The fall in prices of cryptocurrencies was between 10-20 per cent. Bitcoin was down by around 17 per cent, Ethereum fell by 15 per cent, and Tether down by almost 18 per cent, according to CoinDesk.
The price of Bitcoin, the world's biggest cryptocurrency, was Rs 41,28,700 and that of Ether was Rs 3,12,410 on Wednesday morning.
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The government has listed the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, for introduction in the Lok Sabha. The winter session of Parliament is scheduled to begin from November 29.
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".
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"It 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," says the description of the bill on the Lok Sabha website.
While regulators have expressed apprehensions about these digital currencies for long, there is no regulation or any ban on the use of cryptocurrencies in the country presently.
Last week, in a meeting with all stakeholders, the Standing Committee on Finance said that cryptocurrencies should not be banned, but it should be regulated.
Prime Minister Narendra Modi, earlier this month, held a meeting on cryptocurrencies with senior officials. Addressing the Sydney dialogue on November 18, PM Modi said all countries must ensure that cryptocurrencies do not "end up in the wrong hands".
The Reserve Bank of India (RBI) has said cyptocurrencies pose serious threats to the macroeconomic and financial stability of the country.
El Salvador is the only country to give cryptocurrency the status of a legal tender.