Bitcoin Will Not Be Recognized As Currency in India

Finance Minister Nirmala Sitharaman said on Monday in response to a question in the Lok Sabha that the government has no plans to recognize Bitcoin as a currency in India. She also assured the Lok Sabha that the government doesn't track Bitcoin transactions.

Sitharaman cleared that there are no plans for Bitcoin to be recognized as a currency in the country. When asked the question, she replied, “No, sir.”

This comes as the government prepares to present the Cryptocurrency and Regulation of Official Digital Currency Bill 2021 in Parliament's current Winter Session. The Crypto Bill is one of many bills scheduled for introduction in Parliament during the Winter Session. As per the reports, there are plans to ban most cryptocurrencies leaving just a few private cryptocurrencies.

In October 2021, the Reserve Bank of India proposed amending the Reserve Bank of India Act, 1934 to broaden the definition of "banknote" to include digital currency.