New Delhi | Jagran Business Desk: Prices of all the cryptocurrencies crashed by 15 per cent on Wednesday, hours after the government announced that it will introduce the cryptocurrency bill in the Parliament's winter session, which seeks to prohibit all private cryptocurrencies in the country.

Major cryptocurrencies including Bitcoin went down by around 17 per cent, Ethereum fell by 15 per cent, and Tether down by almost 18 per cent, as of 11:45 PM on November 23.

The fall in the cryptos due to the announced new bill has worried investors and they are confused about whether to hold or release the coins. Here's everything you need to know about the cryptocurrency bill and its implications.

What is cryptocurrency bill?

The Central government is going to introduce a bill on cryptocurrencies in the winter session of Parliament. The name of this bill is 'The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021'. The bill seeks to ban all private cryptocurrencies in the country. It also seeks to create a facilitative framework for the creation of an official digital currency to be issued by the Reserve Bank of India (RBI). Even though the bill proposes to ban all private cryptocurrencies, it will allow certain exceptions to promote underlying technology and its uses.

What is the aim of the bill

The crypto bill aims to regulate the digital currency and curb the chances of misuse of this form of asset. According to the RBI cryptocurrencies have the potential risks of macroeconomic and financial instability and capital controls.

What is crypto?

Cryptocurrency means digital or virtual currency. You cannot see or touch it. But it can be deposited in an online wallet, in the form of a digital coin. It can be called a digital cash system, which is based on computer algorithms. No country or government has any control over cryptocurrencies. Cryptocurrency is not limited to the borders or citizens of any one country but it belongs to different countries and citizens.

China has already banned cryptos

The Central Bank of China has declared all transactions related to cryptocurrency illegal. It has also asked to take action against cryptocurrency trading. The Central Bank of China has also said that it will ban foreign exchanges serving domestic investors. This is because there are many companies in China that have made big bets on crypto over the years, especially companies in the tech industry.

Other countries where crypto is banned

Nigeria, Turkey, Bolivia, Ecuador, Algeria, Qatar, Bangladesh, Indonesia, and Vietnam. Apart from these, Cryptocurrency is considered haram in Egypt under Sharia law, although it is not outright banned.

Posted By: Sugandha Jha