Government to ban all the private cryptocurrencies: A major drop in price expected
In the winter session of Parliament, the government intends to introduce the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. According to the official document given by the government, the law intends to ban all private cryptocurrencies with “limited exceptions.” The first text makes no mention of these exclusions. It claims that the Reserve Bank of India has decided to promote the official digital currency that would be produced. The RBI has stated its intention to launch its own cryptocurrency but has yet to do so.
As a result of this news, many cryptocurrency market participants are worried about the possibility of a virtual currency ban, which will result in widespread selling of the virtual currency and a significant reduction in its price.
The prices of key cryptocurrencies have plummeted significantly—bitcoin by 17%, ethereum by 15%, and tether by almost 18%—and are anticipated to fall further.