The Indian government is reportedly planning to fast-track its proposed cryptocurrency bill using the ordinance process.
Similar to an executive order in the U.S., an ordinance law is put into effect by India's president on the recommendation of the cabinet, and would be equivalent to an act of parliament. The route is only supposed to be taken when parliament is not in session.
The government is keen to pass the "Cryptocurrency and Regulation of Official Digital Currency Bill 2021" within a month of clearance of the ordinance, according to a CNBC-TV18 report on Friday. The Indian Prime Minister's Office and Finance Ministry, and Cabinet secretariat have started preparing the draft details of the ordinance, it said.
The arrival of the bill would potentially kick off the development of a digital rupee while banning “private cryptocurrencies,” per previous reports
That would pose a major threat to the nation's crypto industry, which has seen quick growth seen since a central bank ban on banking for cryptocurrency firms was overturned in March of last year.
Local cryptocurrency exchanges recently started a joint initiative, the #IndiaWantsBitcoin campaign, to convince parliament to regulate cryptocurrencies rather than impose an outright ban.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.