On Friday, India’s parliament disclosed plans to introduce a bill that will enable a central bank digital currency (CBDC) and ban cryptocurrencies again. The legislation aims to ensure that blockchain technology is not restricted. The lower house of India’s parliament, Lok Sabha, listed twenty planned new bills, one of which was “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021”.
In 2019, the Reserve Bank of India (RBI) told regulated entities, including banks, that they couldn’t provide services to cryptocurrency firms. This was an indirect ban on cryptocurrencies as the onramps for payments were blocked. However, the RBI was taken to court by the Internet and Mobile Association of India, representing various cryptocurrency exchanges. In March 2020, India’s Supreme Court overruled the RBI.
This cleared the way for cryptocurrency exchanges to accept bank payments and business took off.
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