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Government Seeks To Block Cryptocurrencies In New Bill, Prices Crash: 10 Points

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Currently, El Salvador is the one nation to recognise cryptocurrency as a authorized tender.

The Centre is prone to deliver a Bill within the winter session of Parliament to bar all cryptocurrencies in India, barring a couple of exceptions, and create a framework to manage digital forex issued by the Reserve Bank of India (RBI). In response, all main digital currencies noticed a fall of round 15 per cent and extra, with Bitcoin down by round 18.53 per cent, Ethereum fell by 15.58 per cent, and Tether down by 18.29 per cent.

Here’s Your 10-Point Cheatsheet To This Big Story:

  1. The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is listed for introduction within the Lok Sabha through the winter session, scheduled to begin from November 29.

  2. The Bill seeks to “create a facilitative framework for the creation of the official digital forex to be issued by the RBI. It additionally seeks to ban all non-public cryptocurrencies in India, nonetheless, it permits for sure exceptions to advertise the underlying expertise of cryptocurrency and its makes use of.

  3. The Reserve Bank has voiced “severe issues” about non-public cryptocurrencies. Bitcoin, the world’s largest cryptocurrency, is hovering round $60,000, and its worth has greater than doubled because the begin of this 12 months, attracting hordes of native buyers.

  4. Industry estimates counsel there are 15 million to 20 million crypto buyers in India, with whole crypto holdings of round Rs 40,000 crore ($5.39 billion).

  5. Recently, there have been a rising variety of commercials promising simple and excessive returns on investments in cryptocurrencies, amid issues over such currencies being allegedly used for luring buyers with deceptive claims.

  6. Last week, the Standing Committee on Finance, chaired by BJP member Jayant Sinha, met the representatives of crypto exchanges, blockchain and Crypto Assets Council (BACC), amongst others, and arrived at a conclusion that cryptocurrencies shouldn’t be banned, however it needs to be regulated.

  7. Private digital currencies have gained reputation prior to now decade or so. However, regulators and governments have been sceptical about these currencies and are apprehensive in regards to the related dangers.

  8. On March 4, 2021, the Supreme Court had put aside an RBI round of April 6, 2018, prohibiting banks and entities regulated by it from offering companies in relation to digital currencies.

  9. Delivering a keynote deal with on the Sydney Dialogue on November 18, Prime Minister Narendra Modi had urged all nations to make sure that cryptocurrency doesn’t “find yourself within the fallacious arms”.

  10. Currently, El Salvador is the one nation to recognise cryptocurrency as a authorized tender.

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