New Delhi: On 29th November, Finance Minister Nirmala Sitharaman has said that the government has no proposal to recognize Bitcoin as a currency in the country. She also informed the Lok Sabha that the government does not collect data on Bitcoin transactions. The Minister was Responding to a question in the Lok Sabha.
This is a major development as the government plans to introduce the Cryptocurrency and Regulation of Official Digital Currency Bill 2021 in the Winter Session of Parliament. As per the official data, the crypto Bill seeks to ban all but a few private cryptocurrencies to promote underlying technologies while introducing an official digital currency by RBI.
The question was raised by MP Thirumaavalavan Thol. He raised the question to the Ministry of Finance that, whether the government is aware of the cryptocurrencies that are heavily traded in India and whether trading in cryptocurrency will be legally permitted. He asked about the recognition of Bitcoin on Which FM Sitharaman replied “No”.
Bitcoin was launched back in 2009. Many other digital currencies are not tied to a bank or government and allow users to spend money anonymously. On which the government was concerned about malicious use and decided to regulate such currencies.