According to the report from India, the finance minister on Monday addressed the Lok Sabha and said that it has no proposal to recognize bitcoin into the country’s financial system. Also, the government has no plans to introduce bitcoin into the financial system and make it a currency for the country. She also mentioned that the government is not interested in bitcoin and transactions.
Therefore, it does not collect any data on these privately owned digital currencies from the market. However, bitcoin prices in India stood at 43,79,000 as of November 30. A member of the Lok Sabha asked whether the government of India has any proposal to identify bitcoin. Still, the finance minister replied that we do not have any such proposal shortly.
Bitcoin is a currency that you can operate over the Internet, and therefore, it is a digital currency. You can use it to purchase and sell goods and services across the geographical boundaries of any country in the world, but any banking exchange does not allow it. Therefore, it is not involved in any country’s banking system or credit card issuers.
Also, elimination of the third parties is one of the most important characteristics of bitcoin and therefore, it is trendy all across the globe. It facilitates peer to peer transactions, and digital is a decentralized currency that facilitates transactions without the involvement of any intermediary. On Monday, the winter session of parliament officially began. However, the government is set to bring about the new cryptocurrency and regulation of official digital currency Bill 2021.
The bill is all about the cryptocurrencies that are prevailing in the country. It also involves bitcoin, and however, the government wants to ban all private cryptocurrencies. However, it will also allow some exceptions of famous people’s currencies like bitcoin to keep the technology flowing in the country. Also, the government plans to introduce its digital currency, which is official and will be regulated by the RBI.
Furthermore, according to data from the official website, the Minister of State of finance Pankaj Choudhary introduced the proposal from RBI to the government in October 2021. The Reserve bank of India wanted to make some amendments to the reserve bank of India act and said that it involves the extension of the definition of banknote. Therefore, it proposed a digital form of currency to start trading bitcoin.
According to the report, the RBI is set to implement a strategy to introduce their own central bank digital currency without disruption. The new central bank digital currency will be introduced and regulated by India’s central bank. The officials say that the CBDC can significantly benefit the nation and reduce their dependence on a physical currency like cash.
It will have a high degree of seigniorage as there will be lower transaction costs and a decreased risk of settlement. The involvement of new digital currency, which the country’s apex bank will control, will allow people to have more robust, trusted and efficient legal tender-based payment options. The things associated with digital currencies that are prevailing already will be reduced with the government’s official currency.
According to the finance minister of India, the new budget for the country in the session 2021–22 will be 5.54,00,00,00,00,000 rupees. It is just an estimate, and the actual expenditure is higher by 38% than the corresponding expenditure for 2020–21. To promote the upgradation of infrastructure in the country’s physical boundaries, the government
Has also accelerated the work for the national infrastructure pipeline. The project is started to increase the capital expenditure, and it will be invested with 11100,00,00,00,000 rupees. The estimated time given for completion of the project is 2020–2025. It will provide some excellent infrastructures for the whole country and improve citizens’ lives.
Finance Minister also mentioned that it had lost the national monetization pipeline in 2021. Therefore, it is implemented for the general people to use the resources of a private sector capital. The country’s private sector has more resources than the public sector, so the government wants to tap into it. It wants to use the resources of the private sector so that they can work towards the common goal of achieving a better lifestyle for the citizens of the country.