No proposal to recognise Bitcoin as currency: FM Nirmala Sitharaman in Parliament

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There is no proposal to recognise Bitcoin as a currency, the Union Finance Minister Nirmala Sitharaman said in a response in the Parliament on November 29.

The Finance Minister also said in the written response that the government does not collect data on Bitcoin transactions.

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"No, sir". Sitharaman said to a question "Whether the government has any proposal to recognise Bitcoin as a currency in the country?" by members of parliament Sumalatha Ambreesh and DK Suresh, Sitharaman

Bitcoin is a digital currency that allows people to buy goods and services and exchange money without involving banks, credit card issuers or other third parties.

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The response comes as the government is scheduled to table the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, in the ongoing Winter Session of Parliament. The proposed Bill seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrencies and its uses.

In another response to a question by Thirumaavalavan Thol, MoS Finance Pankaj Chaudhary, said, “Cryptocurrencies are unregulated in India”.

Thol asked the Ministry if the government was aware of the cryptocurrencies that are traded in India and whether trading in cryptocurrency was legally permitted in India. He also asked whether the Centre had allowed cryptocurrency exchanges as a legally permitted entity in the country.

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“Government has received a proposal from Reserve Bank of India in October, 2021 for amendment to the Reserve Bank of India Act, 1934 to enhance the scope of the definition of ‘bank note’ to include currency in digital form,” MoS Chaudhary said in a response to another question by member of parliament Adoor Prakash.

(With agency inputs)