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Govt. plans law to ban Bitcoin
Why is it in news?
- As per the legislative agenda listed by the government, India plans to introduce a law to ban private cryptocurrencies such as bitcoin.
- Cryptocurrenciesare are digital currencies in which encryption techniques are used to regulate the generation of the currency units and verify the transfer of funds, operating independently of a central bank.
Details:
- Government is also planning to put in place a framework for an official digital currency to be issued by the central bank.
- The law will create a facilitative framework for creation of the official digital currency to be issued by RBI.
- The legislation, listed for debate in the current Parliamentary session, seeks to prohibit all private cryptocurrencies in India.
- However, the propose legislation allows to promote the underlying technology of cryptocurrency (Blockchain) and its uses.