Cryptocurrency

No proposal to recognise Bitcoin as currency: FM Nirmala Sitharaman in Parliament

The Union Finance Minister Nirmala Sitharaman stated that there is no proposal to recognize Bitcoin as a currency in her response in the Parliament on November 29,.

In a written response, the Finance Minister stated that data about Bitcoin transactions is not collected by the government.

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“No, sir”. Sitharaman answered a question about whether the government had any plans to recognize Bitcoin as a currency within the country. Sumalatha Ambreesh (Parliament) and DK Suresh (Sitharaman).

Bitcoin is a digital currency which allows users to purchase goods and services, and exchange money without the need for banks or credit card issuers.

This response comes just as the government is due to present the Regulation of Official Digital Currency Bill (2021) in the ongoing Winter Sessions of Parliament. Although the proposed Bill would ban all private cryptocurrency in India, it does allow for some exceptions to encourage the technology behind cryptocurrencies and their uses.

Thirumaavalavan Thol asked another question. MoS Finance Pankaj Chaudhary replied, “Cryptocurrencies in India are not regulated.”

Thol asked the Ministry whether the government knew about the Indian cryptocurrencies and if trading in cryptocurrency is legal in India. Thol also inquired if the Centre has allowed cryptocurrency exchanges to be legalized in India.

“Government received a proposal by Reserve Bank of India (October, 2021) for amendments to the Reserve Bank of India Act 1934 to increase the scope of the definition of “bank note” to include currency in digital format,” MoS Chaudhary stated in response to another question from member of parliament Adoorprakash.