NEW DELHI – The Indian government aims at introducing a bill to ban all kinds of private cryptocurrencies in the country.
The proposed bill “seeks to prohibit all private cryptocurrencies in India”, the Lok Sabha, the parliament of India said. The announcement comes after Prime Minister Narendra Modi expressed reservations over the digital currency, stating that it could spoil the youth.
The government plans to launch its own digital money backed by its central bank.
The cryptocurrency market witnessed massive growth in the Asian country after India’s supreme court overturned a previous ban in April, 2020.
According to a research report, the digital currency market grew by 600 percent over the past year with people holding billions of dollars invested in it.
The government’s move would cause an uncertainty in the market.
Back in June, India’s central bank announced its intentions to introduce its own digital currency by the end of the year.
The move comes after China imposed ban on all cryptocurrency transactions illegal in September.