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Cryptocurrency will in no way be legal tender: Finance Secretary Tv Somanathan

Cryptocurrency will not be legal tender under any circumstances, Finance Secretary TV Somanathan told CNBC-TV18 on Thursday and added that this was absolutely not an option.

His comment comes days after the development that the Cryptocurrency and Official Digital Currency Regulation Bill, 2021 would be considered and passed in the winter session of Parliament.

According to the bill, India should “ban all private cryptocurrencies, however, it will allow certain exceptions to promote the underlying technology of the cryptocurrency.” The decision has caused confusion among crypto investors.

Somanathan is of the opinion that people are reading too much in the brief to list the crypto bill in Parliament.

“However, one thing I can say very clearly is that crypto will not be legal tender in any way. Gold is not legal tender, silver is not legal tender and l ‘alcohol is not legal tender either, beyond that I will not be able to say more, ”he added.

Drafting of the crypto bill is underway, he said.

The 2021 cryptocurrency bill has a key difference from the previous cryptocurrency bill introduced in 2019. It omits the words “ban” from the title. Despite the name change, the main purpose of the bill still appears to be to ban the use of cryptocurrencies in the country.

According to Lok Sabha’s website, the bill will be introduced “to ban all private cryptocurrencies in India, however, it allows certain exceptions to promote the underlying technology of the cryptocurrency and its uses.”

The aim of the bill is also to “create a framework facilitating the creation of the official digital currency to be issued by the Reserve Bank of India,” the bulletin added.
Earlier Wednesday, former RBI Governor Raghuram Rajan said of the roughly 6,000 cryptocurrencies in existence today, only one or two, or at most, only a handful would survive.

“If things are only valuable because they’re going to be more expensive down the line, it’s a bubble,” Rajan said. CNBC-TV18, adding “… a lot of cryptos are only valuable because there is a bigger jerk ready to buy.”

(Edited by : Kanishka Sarkar)

First publication: STI


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