From the creation of Bitcoin in 2008 to today, cryptocurrencies have become very important all over the world. The progress made by this sector since the launch of the Covid-19 pandemic in January 2020 is staggering. The “cryptographic market” has grown by more than 500%.
However, the Finance Minister announced in a 2018-19 budget speech that the government does not consider buy crypto with credit card cryptocurrencies to be fiat currencies.
Taking into account the fact that India has adopted all the early stages of the digital revolution, when semiconductors, the Internet, and smartphones get attention, we need to change the way we think and accept these cryptocurrencies. This is already the first time. Of India. .. Step into a new stage of the digital revolution.
Importance of cryptocurrencies:
Corruption Control-Blocks run in peer-to-peer networks, helping you stay in control of corruption by tracking the flow of funds and transactions. Time Efficiency: Cryptocurrencies run entirely on the Internet, run by a mechanism with very low transaction fees, and run almost instantly, saving money and considerable time for senders and receivers. Useful for. Profitability: Banks, credit cards, payment gateways, and other intermediaries receive nearly $ 3% of the world’s total economic output above $ 100 trillion for services. Blockchain integration in these sectors can save hundreds of billions of dollars. Recently, the government announced the introduction of a bill. In India, funds allocated to Indian blockchain companies are less than 0.2% of the amount raised by sectors around the world. With the current approach to cryptocurrencies, it is nearly impossible for blockchain entrepreneurs and investors to enjoy many economic benefits. Issues related to the ban on decentralized cryptocurrencies
General Bans: Planned bans are central to the official regulation of the 2021 Digital and Cryptocurrency Bill. It wants to ban all private cryptocurrencies in India. However, because cryptocurrencies are decentralized but not private, the classification of cryptocurrencies as public (government-backed) or private (owned by an individual) is inaccurate. Decentralized cryptocurrencies such as Bitcoin are uncontrolled and cannot be controlled by private or public entities.
Cryptocurrency bans can lead to talent and business outflow from India, similar to what happened after the 2018 RBI ban. At that time, blockchain experts were moving to countries where cryptocurrencies were regulated, such as Switzerland, Singapore, Estonia, and the United States. The management, data economy, general bans used in energy, blockchain innovation will stop in India. Deprivation of Transfiguration Technology: The ban is not feasible because anyone can buy cryptocurrencies over the internet. . This strategy praises blockchain technology as a transparent, safe, and efficient technology that reduces the trust posted on the Internet. Regulations need to be clear, transparent, consistent and energized by a vision of what they want to achieve. Clarification of the definition of cryptocurrencies: The legal and regulatory framework must first define cryptocurrencies as securities or other financial instruments and identify the responsible regulatory agency following relevant national law.
Strict KYC Rules:
Instead of banning cryptocurrencies altogether, the government regulates cryptocurrency transactions by including strict KYC, reporting, and tax rules. Ensuring Transparency: Recordkeeping, inspection, independent audits, investor complaints, and dispute resolution can also be considered to address concerns about transparency, information availability, and consumer protection.