Ever since the news of tightening the screws on digital currency in India came to the fore, its value in the crypto market has started taking a dip. The fall in the prices of cryptocurrencies continues continuously and they have registered a fall of more than 15 percent.
Since the news of the tightening of the screws on the cryptocurrency in India came to the fore, its value in the crypto market has started taking a dip. The fall in the prices of cryptocurrencies continues continuously, and they have registered a fall of more than 15 per cent. In fact, in the Lok Sabha Bulletin, information was given by the Central Government that the Cryptocurrency and Regulation of Official Digital Currency Bill 2021 (The Cryptocurrency & Regulation of Official Digital Currency Bill, 2021) can be brought in the winter session of Parliament.
Some people consider this decision of the central government as right, while some are telling it wrong. Fears of its ban have increased among people who have invested in cryptocurrency, and due to the continuously falling prices, heavy losses are also believed to be specific. Simply put, the future of digital currency is swinging in India amid apprehensions.
Cryptocurrency is a ‘punter’s game.’
According to an estimate, more than 15 million people use cryptocurrency in India. People have made a lot of money through old investments in cryptocurrency. But, the faster it gives profits to the people, the quicker it also causes losses. Cryptocurrency is a kind of punter game. In simple words, it can be considered as a commodity, i.e. futures market. But, if there is no control on this, then the possibility of risk is very high.
The crypto market has remained volatile since the Corona pandemic. On a statement by Tesla CEO Elon Musk, its prices started rising, then the cost of cryptocurrency started falling due to the imposition of China’s sanctions. Even after the news of introducing a bill related to cryptocurrency in the Indian Parliament, its price has been falling continuously.
RBI’s Digital Currency
It is believed that with the help of this bill, the Reserve Bank of India (RBI) is preparing the way for its digital currency. There is a big market for cryptocurrency all over the world. However, as any government or regulatory authority does not issue the cryptocurrency, its misuse is possible. A country like India can also use cryptocurrency for doing business, from terror funding to hawala.
Reserve Bank of India, i.e., RBI Governor Shaktikanta Das, also expressed concern about this. But, Shaktikanta Das had given positive signs about the arrival of RBI’s digital currency in the market. If this happens, there is an excellent possibility that a good investment can come in RBI’s digital currency. Not only this, but it can also be a relief for people to make their losses to make quick profits by investing in cryptocurrency.
However, RBI will inevitably show no haste to issue digital currency. And, if RBI introduces digital currency, how much impact it will have on those looking to make quick profits remains to be seen.
Will all cryptocurrencies be banned?
The Central Government will bring Crypto Currency and Regulation of Official Digital Currency Bill 2021 regarding cryptocurrency. This bill is yet to be introduced in Parliament. In this situation, only possibilities are being expressed about it. This has raised apprehensions among the people that if the government bans all cryptocurrencies, investors will suffer. People in India who have invested in this are likely to get trapped.
But, looking at the signs that have come out regarding this central government bill, it can estimate that the possibility of banning all cryptocurrencies from the government seems less. There are two types of cryptocurrencies—first public and second private. Public cryptocurrency can be called a traceable currency. Because the transactions of public cryptocurrencies are linked to each other, and information can be gathered about their trades.
At the same time, in private cryptocurrency, its user or transaction information is not made public. The privacy of the confidential cryptocurrency user is maintained because it isn’t easy to trace it.
Before the bill is introduced in Parliament, it can expect that it will not ban all cryptocurrencies. But, the ban on private cryptocurrency is specific. There is an excellent chance that the public cryptocurrency will continue. Because the central government bans all types of cryptocurrencies, Indian investors can lose millions of crores, which is still going on after the news of the ban.
But it would be wrong to say anything with certainty in this subject from the time the bill is introduced in the Parliament to its passage. However, in the discussion regarding cryptocurrency in the Parliamentary Committee on Finance, it was suggested to regulate instead of a ban. If, in this bill by the central government, the ownership of the government of a country is made necessary for cryptocurrency, then all types of cryptocurrencies can be banned because cryptocurrency like bitcoin is not a currency issued by any country.
It may be that in the Crypto Currency and Regulation of Official Digital Currency Bill 2021 by the Central Government, rules should be made to regulate it instead of banning it.
