The authority is preparing to enact a bill for discussion in Lok Sabha, as per reports on the website of the Indian Parliament (PDF, page 26), which could see personal digital currencies such as bitcoin barred from usage within the nation. The legislation also calls for the development of a virtual national currency released by the Indian Reserve Bank (RBI).
The legislation is named ‘The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’ and its purpose interprets:
“To create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India. The Bill 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.”
If the purport notes that there should be specific exceptions to support the technology platform of digital currency, it suggests the blockchain, which has other applications. For instance, it was announced earlier this month that the NHS has used blockchain technologies to preserve vaccinations at the right temperature.
Only the latest chapter of a lengthy story is the legislation that the administration is seeking to enforce. Reuters stated in April 2018 that the RBI instructed financial firms to cease servicing people and corporations who have interacted with virtual currencies such as bitcoin within 3 months. In March 2020, the Supreme Court of the world overruled this ruling, ensuring that individuals were free to purchase and sell bitcoin.
Although bitcoin is observable, it is definitely tougher for the authorities to watch what happens when it is used by individuals to purchase and sell products. Authorities can see who purchased and sold what at the stage of trade, but when it turns to finding out who is the holder of a bitcoin address, it gets even difficult to find out who is doing what.