India mulling an official crypto-currency? Looks like govt veering towards the idea

Bitcoin is back with a bang. It has rallied 176 per cent so far this year to trade at $10,343 on July 22 from $3,742 on December 31, 2018.

But if it’s looking tempting, beware!

An inter-ministerial committee, formed by the Government of India on November 2, 2017 to study the issues related to virtual currencies and propose specific action, on Monday suggested banning of private cryptocurrencies and criminalising any activity related to virtual currencies.

The government is not in favour of any private digital currencies, including bitcoin for the simple reason it does not want to put investors’ money at risk.

But the panel headed by the Economic Affairs Secretary, where Secretary of the Ministry of Electronics and IT, Sebi chairman and an RBI deputy governor were members, pitched for the introduction of an official digital currency with the status of a legal tender and appropriately regulated by the Reserve Bank of India.

There are around 2,116 cryptocurrencies globally as on date, with a total market capitalisation of $119.46 billion.