India's parliament on Tuesday night announced that a bill would be introduced to ban the use of cryptocurrencies and develop a framework for the central bank's digital currency.
According to AFP, a proposed bill will be introduced in the Indian House of Representatives to ban the private use of cryptocurrency.
It may be recalled that Prime Minister Narendra Modi had last week warned about the use of cryptocurrency, ie bitcoin, that its use could be dangerous for the younger generation.Prior to India, China had in September outlawed the use of cryptocurrencies.
In April, the Supreme Court of India lifted the ban on bitcoin, after which the market saw a surge. The bitcoin market in India had grown by 600% over the previous year.
India, Asia's third-largest economy, owns between 1.5 million and 100 million citizens with cryptocurrencies worth tens of millions of dollars.
After the possible ban, the investment of Indian citizens in the corrupt currency has become uncertain.
India's central bank, meanwhile, raised concerns about the private use of the cryptocurrency, announcing in June that it would introduce its own digital currency by the end of the year.
The proposed bill on cryptocurrency will be introduced in the new parliamentary session which will allow the promotion of cryptocurrency technology to some extent.
The bitcoin market rose 1.67 percent on Tuesday, but news of possible legislation has raised concerns among cryptocurrency users.
Kashif Raza, founder of the cryptocurrency platform Button Ning, says fear has spread since the announcement of the proposed bill.
He said that after the steps taken by the government, the corrupt currency industry would naturally disappear and investors would suffer.
