India not ready for cryptos, for now

The fast price fluctuations in the value of Bitcoins and other types of cryptos and their ever-increasing demand successfully attracts the youth

Recently, the Government has announced the introduction of ‘Cryptocurrency and Government Digital Currency Bill 2021’ in the ongoing winter session of Parliament. It is clear from the details of the bill that the government intends to ban private cryptocurrencies and issue digital currency through Reserve Bank of India. Although the draft of the bill has not been made public, as per the details in public domain, the government is willing to give some relaxation to encourage the technology underneath these cryptocurrencies. With this, panic has spread among the people engaged in crypto business.

The craze for cryptocurrencies has been increasing in the country and the world. In India, both the Union Government and the Reserve Bank had long been of the opinion that cryptocurrencies are illegal. Therefore, their transactions were not being given legal recognition. Reserve Bank of India issued a notice, asking banks to distance themselves from the transactions of cryptocurrencies and warn their customers about the same. Then the Supreme Court ruled that since the government has not banned cryptocurrencies legally, the instructions passed on to banks are not legally tenable. With this, crypto exchanges started trading cryptocurrencies on a large scale. Although there is no official information about this, it is estimated that about 20 million people have put their money in cryptocurrencies. People (mostly youth) of small and big cities and even villages are getting attracted towards it, because they feel that they can get quick profit by putting their money in it. It is being said that a total of Rs 6 lakh crore has been parked in cryptocurrencies in India.

Source: https://www.dailypioneer.com/2021/columnists/india-not-ready-for-cryptos–for-now.html