NEW DELHI: Finance Minister Nirmala Sitharaman on Monday said that the government has no proposal to recognise Bitcoin as a currency in the country. She also informed the Lok Sabha that the government does not collect data on Bitcoin transactions.
When asked whether the government has any proposal to recognise Bitcoin as a currency, the Finance Minister replied, “No, sir”.
The government has listed Cryptocurrency and Regulation of Official Digital Currency Bill 2021 in the ongoing winter session of Parliament.
The Bill seeks to ban all but a few cryptocurrencies to promote underlying technologies while allowing an official digital currency by RBI.
RBI is already in the process to introduce digital currency, and has sent a proposal to the finance ministry seeking amendment in the RBI Act, to include digital currency in the definition of ‘bank note’.
“Government has received a proposal from Reserve Bank of India in Oct, 2021 for amendment to the Reserve Bank of India Act, 1934 to enhance the scope of the definition of ‘bank note’ to include currency in digital has been examining use cases and working out a phased implementation strategy for introduction of CBDC with little or no disruption,” said Pankaj Chaudhary, Minister of State in the finance ministry, in a written reply to Lok Sabha.
He added the RBI is working out a phased implementation strategy.
“Introduction of CBDC has the potential to provide significant benefits, such as reduced dependency on cash, higher seigniorage due to lower transaction costs, reduced settlement risk. Introduction of CBDC would also possibly lead to a more robust, efficient, trusted, regulated and legal tender-based payments option. There are also associated risks which need to be carefully evaluated against the potential benefits,” said Chaudhary.