Swadeshi Jagran Manch (SJM), a pro-Hindutva group in India, has urged the Reserve Bank of India (RBI) to implement a complete ban on cryptocurrency in the country. It sought a time frame for people holding onto cryptocurrency to exit from their stocks.
The SJM national conclave resolution believes the Indian government should outrightly ban buying and selling as well as investment into digital assets. They argued that cryptocurrencies like bitcoin and ethereum should not be recognized in India as it could indirectly become a medium of exchange like the traditional rupee.
The group fears that the adoption of cryptocurrencies would result in black money, terror financing and money laundering. SJM said a fine or penalty should be imposed on those found dealing with cryptocurrencies even after the ban. The resolution said that people disobeying the ban should be liable to a financial penalty.
It urged the Ministry of Consumer Affairs and Corporate Affairs to adopt an aggressive consumer awareness campaign. People can be prevented from falling prey to deceptive advertisements about investing in cryptocurrencies and tokens. The SJM, in its resolution, urged the central bank to pick up the pace to issue digital currency (CBDC). The group wants the CBDC to be recognized as legal tender.
The call for a ban comes as the Indian government seeks wider consultation about cryptocurrencies. The government is also set to debate on a crypto bill that proposes to help develop the CBDC. Analysts say the bill proposes to ban private digital currencies in the country. But it will support blockchain technology and its uses.