Cryptocurrency prices rebound after govt. plans to ban private cryptocurrencies

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Cryptocurrency prices rebound after govt. plans to ban private cryptocurrencies

The price of cryptocurrencies recovered from a 15 -- 20 per cent drop after the government announced it would introduce a bill that would prohibit private criptocurrencies in the upcoming winter session. According to CoinSwitch, the world's largest and most popular coin has jumped by 9.3 per cent in the last 24 hours. The world's second-largest criptome was up 9.1 per cent, Tether increased by 4.9 per cent, and Cardano increased by 9.30 per cent.

The last time we saw it was 9.23 percent higher at Rs 45,51, 390, and ethereum was trading 9.65 per cent higher at Rs 3,46, 266 at the time of writing the story, according to CoinSwitch data. On Tuesday, November 23, the government listed the bill, 'The Cryptocurrency and Regulation of Official Digital Currency Bill 2021', which will be listed along with a total of 26 other bills in the winter session that starts on November 29.

The bill seeks to create a facilitative framework for the development of an official digital currency to be issued by the Reserve Bank of India. It also seeks to ban all private cryptocurrencies in the country, but will allow certain exceptions to promote the underlying technology and its uses. After the government announced its intentions, all major criptocurrency prices fell by 15 per cent. The impact of the announcement on global criptocurrency prices was negligible.

The bill should be flexible enough for young blockchain projects to flourish, and we strongly believe that there is a strong case for a standard process for new cryptocurrencies before they get listed on any exchange in India for trading. According to Mr. Shivam Thakral, CEO of BuyUcoin, I think popular cryptocurrencies likeBitcoin,Ethereum will be pre-approved by the regulators for listing on the exchange.

Motilal Oswal, a domestic brokerage firm, highlighted in its recent note on cryptocurrencies that the total number of owners of cryptocurrencies in India now stands at 10.07 crore. The US is in second place with 2.7 crore in the number of owners of cryptocurrencies, followed by Russia 1.7 crore and Nigeria 1.3 crore according to broker discovery and comparison platform BrokerChooser.

India is 5th in the world of cryptocurrencies as a percentage of population, compared to Ukraine 12.7 per cent, Russia 11.9 per cent Kenya 8.5 per cent and US 8.3 per cent '2 crore Indians and $5 billion worth of money is what India contributes to the world's criptocurrency economy. It not only creates huge money markets and tax avenues for Indian Govt, but it also adds employment opportunities for over 50 k individuals. Vinshu Gupta, the Founder and Director of NoncebloxBlockchain, said that this industry is growing and we need to find a way to coexist with it.