Will there be another cryptocurrency ban? Is India going to eclipse the growth of digital currencies, the second time? These questions are enough to trigger any crypto fan in India. Exploiting the tokens operating on blockchain, a distributed ledger has the potential to protect the worldwide transfer of money, annually. Supervising the crypto assets and allowing the industry to reach new heights will be calculative for both India as well as China to redevelop the payment industry, globally. But if you have been following breaking crypto news, then you will understand that rather than going on track along with China’s President Xi Jinping, India seems to step backwards, instead of taking further move.
We all have experienced a cryptocurrency ban which was levied by Reserve Bank of India in April 2018, where it prohibited the use of digital currencies. It strictly gave directions to commercial banks to keep themselves away from the customers, involved in crypto trading. However, in March, the rule was lifted off by the Supreme Court of India. But according to a recent report, the finance ministry is once again coming up with another ban on cryptocurrency. In India, a very top crypto exchange, Binance Holdings Ltd., is aiming to join a crypto lobby group. The industry is not willing to come at loggerhead with the pivotal future market. When it came time for a developing talent platform, to be hopeful for its growth, the sudden appearance of crisis came between it.
The practice of cryptocurrency ban will drive Bitcoin and other fiat currency alternatives to lower-level. The occurrence of transactions will happen externally to the banking system and will come under the vision of regulators. The illegal practising of money laundering and other financial risks will remain to stay. These factors would become difficult to be intercepted. Bad crypto will prevail over a good one. Not only this, but it will also sweep away the skillful minds from India, or will prefer some other alternate solution for the problem.
The existing and running coronavirus has too sparked a fuel in the growth of cryptocurrency. It won’t be wrong to say that the year 2020 will prove a horrible year for migrants. Besides this, the World Bank too has predicted a fall in remittances to India. The piling of more and more expenses as sending institutions should balance liquidity with related banks in abroad countries, getting much low and facing the threat of currency depreciation. In that way, cryptography appears to be that solution to help in such a crisis.
A popular altcoin firm, Ripple has come in support for crypto processors to establish in India, the government must try to analyze and observe the Singapore model of designate digital assets like Bitcoin or Ethereum, as a mode of payment. The remaining are security tokens, which give holders the right akin to bonds or stocks. And there are utility tokens which share a similar feature with in-store vouchers. Their offering of rights is only applicable to the blockchain. If India is expecting a competent network for the flow of money like information, then it needs to work upon its potential. Cryptocurrency ban is surely not the solution and is rather an inviting self-defeat. In today’s scenario, crypto is an essential need for both financial involvement and judicious lift for the upcoming future.
Conclusion
Those who are dipped in the technology of digital currency and are curious in knowing the current developments through the latest news on Bitcoin, will surely not going to accept the cryptocurrency ban once again. Cryptocurrency has its share of upheaval in the past and not to forget the previous ban by Reserve Bank of India. Coronavirus is yet another factor that has demolished the world economy and major businesses. Cryptocurrency too has tasted its sour impact, leading to crippling prices of major cryptocurrencies like Bitcoin, Ethereum, and others. If there is any possible stand taken by the central authority on banning cryptocurrencies, then they must rethink their decision about it.
