WHY IN THE NEWS?

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 will be introduced in the winter session of Parliament.

About:

• Regulate cryptocurrency and ostensibly ban all private cryptocurrencies.
• Create a facilitative framework for the creation of the official digital currency to be issued by the RBI.
• So far, no public consultations have been held.

What is the Present Status?

• An inter-ministerial panel on cryptocurrency recommended that all private cryptocurrencies, except any virtual currencies issued by a state, will be prohibited in India.
• RBI has raised concerns about cryptocurrencies.

What are Cryptocurrencies?

• Digital currencies in which encryption techniques are used to regulate the generation of units of currency.
• Examples: Bitcoin, Ethereum etc.