No proposal to recognise Bitcoin as currency in India, FM Nirmala Sitharaman clears the air

Union Finance Minister Nirmala Sitharaman Monday responding to a question in the Lok Sabha, said that the government has no proposal to recognise Bitcoin as a currency in the country. She also informed the house that the government does not collect data on Bitcoin transactions. Whether the government has any proposal to recognise Bitcoin as a currency in the country, the Finance Minister said “No, sir”.

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

According to broker discovery and comparison platform BrokerChooser, India has the highest number of cryptocurrency holders in the world at 10.07 crore.

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Bitcoin was introduced in 2008 by an unidentified group of programmers as a cryptocurrency as well as an electronic payment system. It is reportedly the first decentralised digital currency where peer-to-peer transactions take place without any intermediary.

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.

“The bill also seeks to prohibit all private cryptocurrencies in India. However, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses,” the bulletin in the Lok Sabha website mentioned. It also sought “to create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India.”