Is India About To Miss The Bus In Leveraging Cryptocurrency?
Name - Himanshu Gupta
Designation - Student, Amity Law School, Noida
E-mail - Ghimanshu828@gmail.com
Parliament Session Alert
The Cryptocurrency And Regulation Of Official Digital Currency Bill, 2021 creates a facilitative for creation of the official digital currency to be issued by RBI and prohibits all private cryptocurrencies in India.
RBI issued a circular that barred banks and other financial institution from facilitating transactions involving cryptocurrencies which was challenged by Internet and Mobile Association of India and other petitioners arguing that it would put an end to the industry by taking it out of the formal economy. In March 2020 Supreme court quashed the central Bank circular on grounds of disproportionality.
Now, Govt is planning to bring a new bill to bar all private crypto currencies but aims to bring public digital currency.
So, what is Cryptocurrency?
It is a digital currency created from code it is created by peer-to-peer internet protocol e.g. Bitcoin.
Why is Crypto gaining transaction?
Economy is going down
Disillusionment with banking system
Progressive Taxation e.g., currently tax is been given according to Income of the person but in Digital currency there is no tax like recently Elon musk invested 1.5 Billion Dollars.
Crypto is now known to be as Digital Gold.
Advantages of Crypto Currency
Reduce Financial Frauds
Transaction with lower Fees
Disadvantages of Crypto Currency
It is deregulated
There are still questions of it being fully secured
It is not stable i.e. It is very volatile
Is India ready for this Digital revolution
So, my opinion is that rather than banning the cryptocurrency and bringing new currency the government should find ways to regulate the crypto currency. Many countries are thinking about the same thing i.e., to regulate it. It would be a disastrous step for India to ban cryptocurrencies and India would again miss the opportunity for a good head start in something that would be useful for its economy. It should not do the same mistake that it did in 90s i.e. it missed the bus for industrialization and China took the bus 10 years before India and now we can see the economy of China which is four or five times more than that of India.