India- to launch official digital currency banning all private cryptocurrencies. The decision is follow by China’s recent crackdown on Cryptocurrencies. China has made all digital currencies and transactions illegal. Meanwhile, India’s central bank will issue its digital currency.

The Indian proposal was identify in a parliamentary bulletin list. That includes one paragraph on ‘’ The Cryptocurrency and regulation of official digital currency bill, 2021.’’

Though, there is some room for other cryptocurrencies. However, ‘’ to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve bank of India, legislation read.

‘’ The bill also seeks to prohibit all private currencies in India. Meanwhile, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.’’

Last week, Indian Prime Minister Narendra Modi has said that Cryptocurrencies could ‘’ spoil our youth’’. And the country’s central bank has repeatedly warned, in line with other Central banks, they could pose ‘’ serious concerns on microeconomic and financial stability.’’

Cryptocurrency Acceptance

El Salvador is the first country to recognize and accept Cryptocurrency, bitcoin as legal tender. However, major economies have been suspicious of digital currencies. For Example, Deputy Governor of the Bank of England, Sir Jon Cunliffe, warn that they could cause a financial breakdown.

Laith Khalaf, Head of investment analysis at investment platform AJ Bell says that‘’ India’s plan to ban Cryptocurrencies has not wrought the same damage on the bitcoin price. As china’s summer crackdown, but it nonetheless marks yet another stumbling block in Crypt’s advancement as an economic force in the real world.’’

He added that El Salvador’s embrace of bitcoin appears to be an outlier. And also, it was ‘’inevitable that cryptocurrencies will continue to encounter either greater regulation or prohibition in more jurisdictions around the world.