The government has come out with a statement saying it has not made any proposal to recognise Bitcoin, the most popular cryptocurrency in the world, as a legal currency in India. The Ministry of Finance’s written reply was in response to a question asked in Parliament during the first day of the Winter Session.

The development comes at a time when there is uncertainty regarding the future of cryptocurrencies in the country as the government plans to introduce the cryptocurrency bill, aimed at prohibiting private virtual coins, during the ongoing Parliament session.

When asked if the government was aware of the booming Bitcoin transactions in India, the finance ministry said the government does not collect data on such transactions. Responding to whether the government has any proposal to recognise Bitcoin as a currency, the ministry said no.

The reply insinuates that the government could take a harder stance on cryptocurrencies in its bill than expected earlier. While there is a buzz that cryptocurrencies will be banned due to the bill, experts suggest that no conclusion should be made before the details are made public.

However, cryptocurrency firms and startups in the country remain on the edge, fearing a ban. Investor activity on Indian cryptocurrency exchanges has also seen a dip over the past few days.

According to the initial description of the bill, it aims to “prohibit” private cryptocurrencies and pave the way for the introduction of a digital currency by the Reserve Bank of India.

The government also received a proposal from the RBI in October for amendment to the Reserve Bank of India Act, 1934 to enhance the scope of the definition of ‘bank note’ to include currency in digital form.