The Cryptocurrency Bill Explained By Avaneesh Parasar

The cryptocurrency was seeming like a concept floating in the air with no proper definition and details around it. The news was doing the rounds that the Government was considering banning all kinds of private cryptocurrencies by introducing the proposed cryptocurrency bill. The said bill will be tabled in the Winter session of the Parliament, which is just round the corner. For the uninitiated, Avaneesh Parasar explains everything about this new bill.

What is the Cryptocurrency Bill? 

There are a total of 26 new bills that have been doing the rounds and will be tabled in the Winter Session of the Parliament this year. The Cryptocurrency and Regulation of Official Digital Currency Bill 2021 is the one amongst 26 others that has created a buzz. As per the sources Avaneesh Parasar says that once the Bill is in order, no person shall be able to mine, generate, buy, sell, hold, deal in, transfer, issue, dispose off or use cryptocurrency. This has been supposedly proposed in the Bill.

What are the key features of the New Cryptocurrency Bill? 

While there has been no proper information on The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, there have been several sources that the bill gives the provision of exit for all of those people who are holding private cryptocurrency within the stipulated time frame. Let us look at a few more details: 

  • Avaneesh Parasar informs that the Bill has a proper and detailed definition of the concept of cryptocurrency.
  • Some of the sources that have been reporting about the Bill and what all it encapsulates say that as per the Bill, any information such as a code, number that is taken and promises a price will be considered to be Cryptocurrency.
  • Keeping in mind the investments done by several people in India, the Government has proposed that it will not ban the legal use of the technology that is used in cryptocurrency. 
  • According to Avaneesh Parasar,  through this Bill, there will also be a provision for exemption of use of distributed ledger technology. This is a proposal in the new Bill. Further details will only be available once the Bill is tabled in the Winter Session of the Parliament.
  • One of the main aims of the new Bill is to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India. 
  • However, the Bill seeks to prohibit all kinds of private cryptocurrencies in India. There will be certain exceptions in this too. The Bill will allow certain exceptions to promote the underlying technology of cryptocurrency and its uses. This information was provided by a notification on the Lok Sabha website.

The new Bill also has a provision to give the RBI or the Reserve Bank of India the right to recognise foreign digital currency. The RBI will have the right to discount the product under cryptocurrency technology.

How can the uncertainty around the bill impact job creation? 

There have been a lot of doubts about how the uncertainty around the Bill on Cryptocurrency impacts job creation. 

  • Avaneesh Parasar says that there are two opinions that are being considered by people. While one section of the industry says that the Bill could drive away all the new startups out of our country which could in turn impact the varied range of fresh employment opportunities.
  • However, other people have pointed out that it is highly unlikely that it will impact the flow of talent. When the rounds of the new Bill and the ban that it proposes to put on cryptocurrency were circulated, there was panic.
  • However, once the initial panic has eased, all the stakeholders that are involved are trying to figure out and understand what is in store for the booming but nascent industry.
  • Crypto has a decentralised and global nature and because India has a good crypto pool, it is highly unlikely that there can be any impact. 
  • Although, Avaneesh Parasar feels that a potential ban can make the country a little less attractive in comparison to all other countries – this is in terms of job creation and attracting all types of foreign capital.

Can India ignore cryptocurrencies? 

There are a variety of opinions that have been doing the rounds when it comes to cryptocurrency. While some people are in favour of it some people are not. However, regardless of whether the Indian Government is in favour of it or not, the Government certainly cannot draw a blind eye to the space because there is too much that is happening over there. A certain section of people feel, just like Avaneesh Parasar, that it is unlikely that there will be a complete ban on cryptocurrencies. This is because, recently, The Reserve Bank of India which is the central bank tried to put a complete halt on all kinds of cryptocurrency trading. However, it was completely overruled by the Supreme Court. 

There is a lot of uncertainty and confusion about what will be the fate of cryptocurrency and its trading in the near future, but it is also true that India is home to the largest number of traders in the industry. While there is not much that people can do, Avaneesh Parasar says that it is best to keep oneself informed about the ongoing issues around cryptocurrency and keep ourselves updated so that investors do not end up in losses or in any kind of financial trouble.

sudarsan

Sudarsan Chakraborty is a professional writer. He contributes to many high-quality blogs. He loves to write on various topics.