New Delhi | Jagran Business Desk: Prices of cryptocurrencies – including Bitcoin, Tether, Ethereum, Solana and Binance – fell significantly following the central government’s decision to introduce a bill in the upcoming winter session of the Parliament to regulate the circulation of cryptocurrencies in India and ban all of them, except a few.
All major cryptocurrencies were down by nearly 15 per cent. Bitcoin was the worst hit and was down by nearly 18.53 per cent. On the other hand, Ethereum and Tether were down by 15.58 per cent and 18.29 per cent respectively, claimed CoinDesk, a New York-based news site with specialisation in cryptocurrencies.
The massive fall in cryptocurrencies prices was caused after the Centre decided to bring a bill to prohibit all private cryptocurrencies in India. The bill, which will be called “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021”, has been listed for introduction, consideration and passing in the Lok Sabha.
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. 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”.
This comes nearly a week after Prime Minister Narendra Modi had expressed concerns over the use of cryptocurrencies and urged all democratic countries across the world to ensure that they should not fall into the “wrong hands and spoil our youth”.
“Essential for democracies to work together… It should also recognise national rights and promote trade, investment and larger public good. Take Crypto-Currency or Bitcoin for example. Important that all democracies work together and ensure it doesn’t end up in wrong hands,” PM Modi had said while addressing The Sydney Dialogue.
Notably, the Reserve Bank of India (RBI) has repeatedly reiterated its strong views against cryptocurrencies, saying they pose serious threats to the macroeconomic and financial stability of the country and also doubted the number of investors trading on them and their claimed market value.
Earlier this month, RBI Governor Shaktikanta Das had reiterated his views against allowing cryptocurrencies, saying they are a serious threat to any financial system since they are unregulated by central banks. However, the Standing Committee on Finance, which met last week, believes that cryptocurrencies “should not be banned, but it should be regulated”.