Saturday, January 25

Crypto Ban: Future of Digital Currency in India?

We all heard Bitcoin has recently touched its all-time high of $54,000. It made a historic move after a leading electric carmaker company proposed to buy $1.5 billion in Bitcoin. They also made the announcement of accepting the currency as a mode of payment. After such a huge wave in the investment market, India is still in a muddle. There are rumors of banning cryptocurrencies by the government and launching an official digital currency. Many legal experts and investors don’t consider the crypto ban a wise decision.

Why Crypto Ban?

The government is insufficient in terms of regulation and recognition, hence making the future of cryptocurrency vague. The central government revealed that it will introduce a new bill on cryptocurrencies. The Cryptocurrency and Regulation of Official Digital Currency Bill 2021 have no recent update.

Reserve bank of India banned banks from conducting transactions related to cryptocurrency in 2018. However, the government lifted the ban in March 2020. And since then cryptocurrency is functioning in India normally.

Speculations are rife that the new cryptocurrency bill might impact existing investors who are investing in private digital currencies like Bitcoin. This can be a possibility if the Centre explores and considers the recommendations made by the Inter-Ministerial Committee (IMC) on virtual currencies.

Earlier, the IMC in its recommendations had stated that private virtual coins lack attributes of a currency and cannot replace fiat currency.

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