Cryptocurrency in India

 

What is cryptocurrency?

Cryptocurrency is a digital currency that can be used as regular money to transact at accepted merchants, but it cannot be used in a physical method. It works on the principles of cryptography. It is believed that it is more secure than a regular form of currency because its channels run on blockchain technology. It secures each transaction in a unique way which then leads to ‘mining’, a single place where all currencies are kept. Various types of cryptocurrencies are Z-cash, Litecoin, Bitcoin.

Cryptocurrency in India

The cryptocurrency in India has become quite popular, especially in recent years. The value of the cryptocurrency has increased manifolds in the coronavirus time. The features such as no need for a bank account to transact, the secured transaction and details of it being transparent, the fast rate of the transaction, and the no government involvement help it to gain popularity.
More than 400 companies and firms have accepted it as a form of payment in India such as Dell. Currently, India has more than 70 lakh people who have investments in cryptocurrency, most of which is in Bitcoin.
The government on the other hand is not in favour of allowing it. The RBI had banned commercial banks to trade on it in 2018, which was then overturned by the Supreme Court on the basis that there was no law under which such an order can be executed. It also asked the centre to finalise the regulations on cryptocurrency.

Current Legal Scenario

Indian Union Government is quite reluctant in allowing cryptocurrency. The major reason behind this is because of the anonymity of the form of transaction, it might be helpful for terrorists’ organisations to collect money and then spend it on illegal activities. The country is looking forward to the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, which is believed to be allowing only certain banks and entities to transact on cryptocurrency. It is also rumoured to be setting up a 10-year jail term for individuals or organisations who break the law.

We all will have to wait for the bill to be put up in front of the public. Even though I am not an investor in cryptocurrency, I would want the govt to regulate it and not ban or limit it. It will hamper a lot of people and a lot of money will be trapped. It will also stop Indians from taking the leverage of a global currency, which is believed by futurists such as Bill Gates to have more than 25% of the world currency share by 2030. In this state of the economy, any form of increase, even though not taxed, can help the country.