- The Reserve Bank of India (RBI) will be looking at the plan put forward by the government. RBI is the official authority to issue the creation of the digital currency of India
- Cryptocurrencies like bitcoin and ethereum will become illegal in the country
Traders have asked the Government to reconsider its decision to ban cryptocurrency in India. It involves many people’s livelihoods, including employees associated with the work of cryptocurrencies in India.
The future of Cryptocurrency in India seems to be bleak as the Government has decided to ban the digital currency in the country. The news came as a shock to many crypto traders and exchanges plying in the country. Despite the pandemic, the year 2020 saw a massive increase in the number of traders on the exchanges and the trading on crypto exchanges also increased manifold. On the other hand, bitcoin’s bullish rally has pulled in more investors in the crypto market. Yet, the future of Crypto in India is bleak.
In India, the Cryptocurrency requests the Center to reconsider its plan to ban the private Cryptocurrency like Bitcoin in India and create its own Central Bank Digital Currency (CBDC). The government’s intention to bring its currency is a welcome move, and the government considers this to be an important step. India appears to be following the same route, just like China, which launched its cryptocurrency.
The Reserve Bank of India (RBI) will be looking at the plan put forward by the government. RBI is the official authority to issue the creation of the digital currency of India. The Government’s intentions and its detailed plan to create a facilitative framework for the creation of the currency is expected to be tabled in the Budget 2021. The Government is sure to ban all the other digital currencies in India.
While the ban is possible, the blockchain technology, which is the Cryptocurrency’s underlying technology, will be used. However, many believe that it will make the use of cryptocurrency like bitcoin and ethereum illegal in the country.
Expert opinion on the recent decision of the Government to ban crypto
Rahul Pagdipati, CEO, Crypto exchange and wallet ZebPay seems to be very disappointed by the government’s disclosure on cryptocurrency. He equips that the digital currency bill to be tabled in Lok Sabha is a good prospect but its success depends on the details of what bill considers as Private cryptocurrency. He also added that bitcoin is not a private currency; it is a public currency owned by anyone. It is just similar to the internet.
According to the experts, the Government feels cryptocurrency a threat against its Indian currency INR and is an alternative to INR. They also argued that cryptocurrency are similar to assets like gold. Nischal Shetty, Founder, Wazir X, cryptocurrency Exchange acquired by Binance informed that INR is the only legal currency in India and crypto is only an asset a utility that people buy and sell. Bitcoin and other crypto-assets act like gold and not an alternative to INR or government-issued legal tender.
Padipati further said that crypto and digital currency could go hand in hand. So, the industry has to plead to the Government to consider the stakeholders before banning the cryptocurrency in India. This move may affect the livelihood of many people dealing in cryptocurrency and the entire workforce employed in the digital currency industry in India, said Shivram Thukral, CEO, BuyUcoin.
India had tabled this move earlier in 2019 also. The draft bill to ban the cryptocurrency in India was proposed to the regulators. According to the bill, anyone dealing with cryptocurrency will have to face a fine or imprisonment of up to 10 years or both for mining, holding, selling, trading, issuing, disposing or using crypto in India. The RBI also issued a circular in 2019 that banned banks and other regulated entities from doing business with crypto companies. The Supreme Court stopped this in 2020.
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