As the Centre proposed to table a Bill on cryptocurrency, it traded in red on Wednesday following government’s announcement to bring a bill to prohibit all private cryptocurrencies in Indian the Winter Session of Parliament that begins on November 29 to facilitate the creation of an official digital currency by the Reserve Bank of India (RBI). The bill seeks to ban all cryptocurrencies, except a few, and introduce a system to regulate crypto transactions in India. However, following the government’s proposal, the values of major digital currencies dropped significantly, with Bitcoin and Tether losing the most.
As news of the ban reached the crypto market, most cryptocurrencies remained in the red on Wednesday. Currencies like Ethereum and Dogecoin went down by 22.86 per cent and 22.54 per cent respectively. Litecoin has tanked by 24.59 per cent whereas Ripple or XRP has fallen by 24.66 per cent. Shiba Inu has tanked 27.40 per cent and BTC dropped by 32.22 per cent. Hugely popular cryptocurrency Bitcoin was trading at $56,338.10 while Ethereum was at $4,237.59.
Dogecoin is trading at $0.2223 while XRP (Ripple) trades at $1.04 as of now. Litecoin is currently priced at $210.06. Shiba Inu currently trades at $0.00004045.
Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 “seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology and its uses.” Another objective of this bill is to create a framework for creation of official digital currency, which will be issued by the Reserve Bank of India (RBI).
Mr. Mohan Shukla, Managing Director of White Dolphin Media and a known expert in public policy, government regulations and regulatory affairs told www.indianpsu.com that he is in total favour of ban on crypto currencies in India as its use in the country would devaluate the Indian currency. Moreover, there is no regulatory framework to check this form of currency and it can be used against the country for funding terrorism, narco-terrorism and other forms of anti-national activity.