Cryptocurrency in India
The outlook of the Indian Government and RBI on cryptocurrency has been dismissive from the time crypto has gained popularity in the global market. In the current Parliament session (Winter session), the government has bought a cryptocurrency bill that aims to ban all the private cryptocurrencies in India.
A cryptocurrency or crypto was first
invented in 2008 by a group of people using the name “Satoshi Nakamoto”. To
date, the original inventor of cryptocurrency is not known. Cryptocurrency is a
type of digital currency that majorly functions on Blockchain technology. In
2009, the first decentralized cryptocurrency “Bitcoin” was released.
Cryptocurrency is generated by a process
called “Mining” and is based on “Blockchain” technology. Each crypto coin is
validated by the blockchain. Anyone can mine crypto if they have knowledge of
blockchain technology. Blockchains are secure by
design and are an illustration of a distributed computing system with high
Intricate fault tolerance. The decentralized agreement has thus been achieved
with a blockchain.
Crypto came into the
spotlight when Elon Musk tweeted about “Dogecoin” and every millennial started
investing and developed a keen interest in Crypto market. At present, there is
no regulatory framework in India to safeguard cryptocurrency investors. To mend
this government is bringing The Cryptocurrency Bill in the Parliament during
the current winter session.
The new bill will aim at banning private cryptocurrencies while furnishing a structure for the creation of an authorized digital currency by the Reserve Bank of India. “ The bill also seeks to ban all private cryptocurrencies in India. Still, it allows certain exceptions to promote the underlying technology of cryptocurrency and its uses,” the bulletin said. It also sought “ to invoke a facilitative infrastructure for the creation of the authorized digital currency to be issued by the Reserve Bank of India.”
The central government won't
allow cryptocurrency as a legal tender in India. This means that you can't go
to a restaurant, and pay in cryptocurrency. Also, you can't go to a bank and
ask for your cryptocurrency to be converted into rupees. At the same time,
Government will not outright ban crypto but will have a diplomatic approach
towards the use of cryptocurrency in the country.
Share your
thoughts on this with us in the comments.
I think the government will eventually ease out laws about crypto and try to regulate it with mandating everyone to get a license and attach every transaction to that govt license.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteThey are trying to impose regulations, and when there are regulations, corruption seeps through. The modern governments are capitalist pawns, and
ReplyDeletethe rise of Cryptocurrency market will crack the banking systems, the way they are looting money has created distrust among the common citizens.