In a big defeat for cryptocurrencies in India, the government announced on Thursday that they will not be granted legal tender status in any way. "Right now, all I can say is that cryptocurrencies will not become legal tender," Union Finance Secretary T V Somanathan said. Gold and silver are not legal tender in India, but the Indian Rupee is. The remainder will be determined by the bill."
The finance ministry is preparing a Cabinet note for further deliberations on establishing a regulatory environment for a Reserve Bank of India (RBI)-issued official digital currency and barring private cryptocurrencies.
Earlier on November 13, Prime Miniter Narendra Modi had met top officials from Finance and other ministries. The most significant input in the meeting came from the Reserve Bank of India
The government declared shortly after the PM's meeting that conversations with stakeholders and experts were ongoing, and that attempts to mislead the youth by "overpromising and non-transparent cryptocurrency advertising" needed to be prevented.