India is considering to introduce a new bill which will ban the use and trading of private cryptocurrencies like Bitcoin and Ether in the state. In the budget issue of 17th LOK SABHA (India's lower house) the Govt. has listed a bill which proposes a ban on all private cryptocurrencies. The bill also proposes that a framework will be created for the creation of official digital currency of India to be issued by RBI, the central bank of India, but "certain exceptions will be allowed to promote the underlying technology of cryptocurrencies and it's uses" the Lok Sabha bulletin said.
This action is not new by Reserve Bank of India, 2 years ago they completely banned the trading of cryptocurrencies. Banks were issued guidelines not to provide any services to crypto exchanges, this had a huge negative impact on the Indian crypto ecosystem and majority of exchanges shut down. However exchanges retaliated and approached supreme court to challenge the ban and in March 2020 India's Supreme Court allowed banks to handle cryptocurrency transactions from exchanges and traders, overturning a central bank ban.
Implications of Bill
Although the bill proposes ban on private cryptocurrencies the word "private" however is not defined in the bill. Bitcoin, Ether are decentralized blockchains in which all transactions are publicly visible to anyone, morever as Defi Dex are not privately owned they cannot be stopped.
Note: I have published this after "THE HINDU" confirmed the news, you can see it here-https://www.thehindu.com/sci-tech/technology/india-proposes-law-to-ban-cryptocurrencies-create-official-digital-currency/article33703822.ece
