No Proposal to Recognise Bitcoin as Currency in India: Finance Minister in LS

The Finance Ministry's reply also stated that the Government of India does not collect data on Bitcoin transactions.

Image used for representational purposes.

(Photo: PTI)

In a written reply in the Lok Sabha on Monday, 29 November, the Union Ministry of Finance said that the government has no proposal to recognise Bitcoin as currency in India, reported news agency ANI.

The reply also stated that the Government of India does not collect data on Bitcoin transactions.

According to The Indian Express, when asked whether the government has any proposal to recognise Bitcoin as a currency in India, Union Finance Minister Nirmala Sitharaman replied, “No, sir.”

This comes as the Union government plans to move a Bill which seeks to prohibit all private cryptocurrencies in India in the Winter Session of Parliament, which began on 29 November.

Called the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, it will allow for certain exceptions to promote the underlying technology of cryptocurrency and its usage.

The government's objective is "to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India".

Prime Minister Narendra Modi had earlier said that all democratic countries need to work together on cryptocurrency and ensure that it does not end up in the wrong hands.

Giving an example of the virtual currency, he had said, "Take cryptocurrency or Bitcoin for example. It is important that all nations work together on this and ensure it does not end up in the wrong hands, which can spoil our youth."