As Elon Musk Tesla targets to extend its activities to India, it will have to maneuver around an imminent ban on private cryptocurrencies.
The Indian Parliament is discussing a bill that would make all private cryptocurrencies illegal in the region, called the Bitcoin prohibition.
The Cryptocurrency and Regulation of Official Digital Currency Bill of 2021 aim to prohibit all private cryptocurrencies, such as Bitcoin. Not all cryptocurrencies, though, would be prohibited.
The Reserve Bank of India (RBI) will provide the structure and issue the country’s official digital currency.
According to Coin Telegraph, India seems to be following the same cryptocurrency model as China, where the central bank is developing its own digital currency.
Nigeria has joined the movement of China and India, but unlike others, does not provide an alternative cause of action. According to documents, Tesla intends to establish a production plant in India.
According to local sources, Tesla’s next manufacturing plant may be in Maharashtra or Karnataka. In January, the electric car company bought $1.5 billion in Bitcoin with the goal of embracing the blockchain as a payment option in the future.
Tesla’s Bitcoin plans, especially its efforts to make Bitcoin a payment option, may run afoul of India’s impending ban.
A senior government official told Reuters that India’s Bitcoin ban would make the holding, issuance, mining, selling, and transferring of crypto-assets illegal. Tesla does, however, offer a number of other payment options, including Apple Pay.
Tesla will have to invest in India’s proposed official digital currency if it wants to offer its customers the same cryptocurrency payment choice.