Indian crypto industry reacts to ban proposal – Asia Times

Inda’s crypto industry is calling on the central government to reconsider its apparent plan to ban private cryptocurrencies. Industry players welcomed the government’s plan to develop a central bank digital currency (CBDC) but were concerned about the government’s definition of “private cryptocurrencies.”

The Indian government’s plan to “create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India (RBI),” was announced in the agenda for the upcoming Budget session of Parliament, Mint reports. The legislation seeks “to prohibit all private cryptocurrencies in India,” the agenda said. It is meant to allow the use of blockchain technology, which is the underlying tech behind cryptocurrencies, but many expect that it will make the use of currencies like bitcoin and Ethereum illegal in the country.

“The digital currency bill to be introduced in the Lok Sabha is a welcome step. Its success will depend on the details, particularly the definition of what the bill calls ‘private cryptocurrencies’. This is not a common term. Bitcoin is not privately owned by anyone. It is a public good, like the internet,” said Rahul Pagdipati, CEO of crypto exchange and wallet ZebPay.

“Bitcoin and most crypto assets are more like gold and not an alternative to government-issued legal tender,” said Pagdipati. “Crypto assets and digital government currency can coexist and together.”

The industry has urged the government to consult stakeholders before coming to a decision. “We urge the government to take the opinion of all the stakeholders before taking a decision that may affect the livelihood of the entire workforce employed in the digital asset industry in India,” said Shivram Thukral, CEO of BuyUcoin, another crypto exchange and wallet. “We have faith in the government and hope that this bill will move India forwards, not backwards,” said Pagdipati.