In 2018 a ban was imposed on cryptocurrency trading which was overturned by the Supreme Court in the month of March, 2020. This feeling of euphoria may just be short lived for Crypto Traders because as of today the parliament is planning to introduce a bill backed by the ruling party BJP to ban all private crypto trading in India.
A brief summary on Cryptocurrency
Cryptocurrency is decentralized digital money, based on blockchain technology. You may be familiar with the most popular versions, Bitcoin and Ethereum, but there are more than 5,000 different cryptocurrencies in circulation, according to CoinLore.
As it is out of the realm of governance and there is only a specified number of crypto launched by a company, (i.e., There are just 21 million bitcoins released in the world) it isn’t affected by inflation of real world currency. The decentralization helps keep the currency monopoly free and in check so that no one organization can determine the flow and the value of the coin, which, in turn, will keep it stable and secure, unlike fiat currencies which are controlled by the government.
The developers wanted to create virtually untraceable source code, strong hacking defenses, and impenetrable authentication protocols, which sounds cool but this results in most of the modern illegal transactions taking place in the crypto world.
Reluctance of Indians to adopt Cryptocurrency
As stated earlier, since the inception of crypto popularity our government has always been against the idea of transactions being done with anything other than the fiat currency.
The Reserve Bank of India (RBI) is currently evaluating the introduction of a central bank digital currency (CBDC), as the Deputy Governor of the RBI, B P Kanungo stated that a decision on the matter will be announced “very soon.”
What does the future hold?
Although the draft bill doesn’t mention the word “ban” or anything resembling it, there’s a high chance that crypto trading will be a very strictly monitored affair and the bill may make trading for a common man impossible. With bitcoin value reaching ₹37,28,032.34 as of the moment I’m writing this article and the world's richest man Elon Musk vocally promoting and investing huge sums in crypto, it has never been a better time to get on the crypto hype train but it is altogether a different story for Indians.
Our government is planning to launch its own digital currency and following countries like USA, China, Sweden in the trend but again, this completely breaks one of the core intentions to launch cryptocurrency which is decentralized, while national digital currencies are typically centralized and may be susceptible to inflation.
To end this article on a positive note I personally think that the introduction of a centralized crypto if managed properly may benefit our economy massively and will dramatically reduce the illegal transactions and scams which are operated through the world of cryptocurrency as India is already infamous around the world for online frauds and scams.