back to article India plans national digital currency plus a ban on ‘private’ crypto-cash

India has signalled it intends to create a digital version of its currency. The Lok Sabha - the lower house of India’s Parliament – last week issued a bulletin [PDF] listing bills it will consider in its next sitting. The bulletin lists “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” and says its …

  1. sev.monster

    We all knew govts would take ownership of crypto, right? After all, can't have the citizens giving value to their own fiat currency when the govt has their own already... That's like, treason or something, duh.

  2. iron Silver badge

    > But absent a draft and therefore a definition of “private cryptocurrencies”

    At least the people of India should be spared from the Zuckcoin.

  3. Anonymous Coward
    Anonymous Coward

    Money laundering

    Governments everywhere don't like you being able to move money around without their approval

  4. Anonymous Coward
    Anonymous Coward

    India & Gold

    This is just a digital repeat of the Gold Control Act in 1962, which outlawed Indians being able to own gold in any form except jewelry.

    It's all about controlling the lower castes.

    1. pradeepvasudev

      Re: India & Gold

      What a crock of shit! "Controlling the lower castes" hahahahaha! The Prime Minister himself is "lower caste"! And so is the President! There, broke your stupid little narrative with just two little facts, didn't i?

      Fwiw, in India, despite everything, trust in the government remains high - people are more inclined to trust the government than a bunch of private folks who may or may not be around tomorrow. Companies may come and go, governments are around forever, and finally answerable to the citizens.

  5. John70

    Currency <-> Curry

    I first read this "India plans national digital currency" as "India plans national digital curry"

    1. sev.monster

      Re: Currency <-> Curry

      The newest in the VR/AR craze.

    2. Anonymous Coward
      Anonymous Coward

      Re: Currency <-> Curry

      I hear the Curry Blockchain is backed by proof of shits.

      1. David Hicklin Bronze badge

        Re: Currency <-> Curry

        "Curry Blockchain is backed by proof of shits."

        just make sure you get a receipt every time you go to the toilet.

  6. Blackjack Silver badge

    This will just push people to hoard cash

    Because people won't trust any private government backed crypto currency no matter how they back it up as being a government they can just change the rules any time.

    Maybe it could work in India? Who knows.

    1. sev.monster

      Re: This will just push people to hoard cash

      They can already change the rules at any time. Look at the USA. See how GameSpot stocks total over 100%? See how the "stimulus packages" are poofed out of thin air despite the country being in massive debt?

      Every government around the world with a fiat currency generally just uses its own global power and banks to back it's currency, it's all promises with no intrinsic value—and as such, they can print as much as they want and say it's worth as much as they want with only as much regulation as they tell you they are using. State-sponsored crypto will be no different, unless they do not take a large initial holding (i.e. keep a large % of the total coins for themselves to fill the reserve, to allow trade for fiat to crypto and to increase value). Even then, if it were to use typical blockchain technology, and the government would verify transactions on behalf of the people, they would also be in the perfect position from a mining perspective—and with how huge the number of transactions will be, you will need a supercomputer or two to mine after a few years, if even that.

      I am not an investor... IANAI... hehe, still looks like anal.

  7. Death_Ninja

    Ban Crypto Currency?

    Isn't the very nature of crypto currency that governments can't control it? How do you ban it?

    1. DS999 Silver badge

      Re: Ban Crypto Currency?

      Don't permit licensed financial institutions like banks to convert from bitcoin to rupees or the reverse. If you can't convert to/from your own currency that makes cryptocurrency a lot less useful - you'd have to convert to something else like dollars or euros and hold an account in another country, which may or may not be legal to have without reporting it under Indian law. Or you can buy something with the proceeds, then you have the problem of importing whatever you bought without customs finding out.

      They can't block it entirely, but they can make it a lot less convenient and obviously have penalties for being caught that make people think twice.

      1. sev.monster

        Re: Ban Crypto Currency?

        Imagine going to a shady back alley to illegally trade for Monero. In countries where the economy is trash, I can imagine this being lucrative, should people have access to the Internet and hardware that can process such transactions.

  8. Anonymous Coward
    Anonymous Coward

    Forbidden fruit can be sweeter

    Even if fiat/crypto exchange can be largely extinguished, many will have an incentive to conduct business with crypto for numerous reasons of evasion - nefarious or noble. While taxes ultimately underpin sovereign fiat currency value, it is perception that gives any currency its immediate value. And anonymity enhances that value - something that is increasingly hard to obtain with modern fiat. This applies even to traceable crypto like Bitcoin, but far more so to some other cryptocurrencies.

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