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India Might Ban Most Cryptocurrencies and Replace Them With an Official One

BTC
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China is starting to seem like a trailblazer—at least when it comes to banning cryptocurrencies. India's government said on Tuesday that it's thinking about outlawing private cryptocurrencies in favor of a central bank digital currency.

As reported by The Register, the announcement arrived in a bulletin detailing several bills the Indian Parliament is set to debate in December. The Bill in question is called "The Cryptocurrency and Regulation of Official Digital Currency Bill." 

Here's the summary of the Bill's intent:

"To create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India; however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses."

The Register noted that it's unclear what exactly the Indian government plans to do with other cryptocurrencies, given how broad a statement "certain exceptions to promote the underlying technology of cryptocurrency and its uses" is.

But it seems like India could follow China in banning most cryptocurrencies while promoting its official CBDC. This could, in theory, make it easier for the countries to make cross-border payments without relying on more traditional cryptocurrencies.

The announcement followed two Swedish regulators proposing a ban on crypto mining due to its environmental impact. (Which, incidentally, is the same reasoning China provided for its ban.) So it seems cryptocurrency is making a few enemies.