Bitcoin on Monday fell by over 6 per cent to $45,893 contracting its advance so far this year to about 60%.
The world’s largest cryptocurrency had reached a new record on Sunday at about $49,344, reaching closer to the $50,000 mark.
Rival cryptocurrency Ether hit a record on Saturday and was up about 150 per cent year-to-date.
Bitcoin has been buoyed in recent months by endorsements from the likes of Paul Tudor Jones and Stan Druckenmiller. Bloomberg reported earlier that Morgan Stanley may bet on Bitcoin in its $150 billion investment arm, following news late last week that BNY Mellon plans to service cryptocurrencies for its clients. And that’s after Tesla Inc. put about $1.5 billion into Bitcoin.
Meanwhile, the Indian government does not consider cryptocurrencies legal tender or coins. So, the government wants to eliminate the use of cryptocurrencies and doesn’t want such currencies to become a part of the payment system. It has thus listed a bill in Parliament, seeking to bar all private cryptocurrencies in India, and also lay the groundwork for an official digital currency. The detailed provisions of the bill have not yet been released to the public.
Earlier, even RBI had stated that it was working on a digital version of the rupee and results were expected soon. A summary of the bill stated that it sought to “create a facilitative framework for the creation of the digital currency to be issued by the Reserve Bank of India”. Such official currencies are being contemplated by several central banks globally, such as Canada, USA, Singapore and China.