The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, was introduced with the aim of establishing a dual framework: enabling the issuance of a Central Bank Digital Currency (CBDC) by the Reserve Bank of India (RBI) and regulating or banning private cryptocurrencies. The bill proposed a clear distinction between government-backed digital currencies and private digital assets, citing concerns over financial stability, consumer protection, and the misuse of cryptocurrencies for illicit activities.
Scheduled for discussion during the Winter Session of 2021, the bill was not tabled in Parliament. Instead, the government decided to engage in further consultations with industry stakeholders and regulatory experts. This delay, while creating a sense of uncertainty, allowed for a more thoughtful consideration of the technological, economic, and legal implications of cryptocurrency regulation. Stakeholders emphasized the potential of cryptocurrencies to drive innovation, create jobs, and enhance financial inclusion. The government’s decision to tread cautiously reflects an acknowledgment of these possibilities while remaining committed to addressing associated risks.