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Cryptocurrency ban: RBI's proposed digital currency project and what it means for you, explained

This tender is neither banned in India, nor is it legalised – making it hang somewhere in the grey zone.

January 30, 2021 / 05:28 PM IST

The government is preparing to introduce a law to ban private cryptocurrencies such as bitcoin and launch a framework for an official digital currency issued by the Reserve Bank of India.

The law will create a facilitative framework for creation of the official digital currency to be issued by the central bank, according to the agenda published on the Lok Sabha website on Friday.

The proposal to ban cryptocurrency is among the 20 bills to be considered at the Budget session of parliament.

In a recent note, the Reserve Bank of India (RBI) mentioned that it was working on developing its own digital legal tender that has the backing of the state.