In the Budget session of parliament in early 2021, the government proposes to ban private cryptocurrencies in India. However, the underlying technology and its uses can be allowed. Cryptos could be allowed as commodities. It is to be seen what constitutes a private cryptocurrency and whether a Bitcoin-like asset could qualify as a private crypto. The earlier attempt was to ban the cryptocurrencies but the present attempt seems to promote the public cryptocurrencies. Private currencies are issued by private organisations or individuals who settle the transactions. As Bitcoin is used for settlement, people started calling it a currency. In reality, it is an asset, a digital commodity or store value. Bitcoin is decentralised — it is not run by an individual but by a network.

Since cryptocurrency is a global and decentralised system, it is difficult for any government to ban it. Such a technology and control is not vested in any entity.

The idea is to stop the scams running in the name of Bitcoin. There was a Bitcoin mining scam too.

The Government proposes to introduce a bill — the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. It seeks to create conducive environment for an official digital currency to be introduced by the RBI. There are countries like China which are examining Central-bank-regulated-digital currencies (CBDs). India may join this club. It proposes regulation for such digital currencies. Indian rupee would be globally acceptable if there is digital currency issued by the RBI. Money transfers would be quicker, even internationally. it would be cheaper.

India’s decentralised blockchain could be called BharatChain.