Will India ban Cryptocurrency? What you need to know.

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Yesterday (November 24th), the Indian government made a very ambiguous announcement on their plans to ban “private currencies” – resulting in the crypto market crash by up to 20%. 

The announcement is about banning private cryptocurrency. Although yet to be defined clearly, cryptocurrencies like Bitcoin and Ethereum are completely public cryptocurrencies built on public blockchain networks. Transactions are traceable; however, they are entirely anonymous.

Whereas Private cryptocurrency may refer to coins like Monero and Dash. Although these are built on public blockchain networks, they conceal transaction information to provide privacy to users.

Over ten crore Indians have six lakh crore of investment involved in cryptocurrency – the government must need to take into account and might not proceed with a ‘Blanket Ban.” Moreover, on November 15th, top crypto companies and players had a panel meeting with Members of the Parliament. The meeting ended with the conclusion that cryptos will not be banned but regulated.

For cryptocurrencies to progress, the government thinks it’s in its best interest to regulate them. Lawmakers will regulate crypto to ensure its usage responsibly and lawfully.

The said framework has also called for creating an official digital currency issued by the Reserve Bank of India. Countries like China, Sweden, The Bahamas are also using CBDCs within their economy.