A ban on cryptocurrency would cause the stakeholders of the same to crash tragically while its importance continues to thrive in the rest of the world. Let us delve deeper into this apprehensive case.
With the recent budget of India, the government has triggered the idea of banning privately-owned cryptocurrencies and crypto assets in the country by proposing a new bill. The RBI is to design and issue a new digital currency that would be accepted country-wide.
The legislation would continue to promote the technology that lies under the creation of these digitized currencies, however, trading, investing, and mining of the private currencies would not be accepted in the country.
Several investors and stakeholders have already put their billions and millions on private cryptocurrencies like bitcoin etc. With the new idea of the ban, a hustle eventually grew amidst these investors and stakeholders. The government is receiving urges to reconsider the idea of a complete ban and hence the issue is still up for debate.
What is Cryptocurrency?
Cryptocurrency is a term used to define virtual currency, one used as a medium of exchange like physical money. The process of cryptocurrency uses blockchain technology that is decentralized and privately practiced in order to manage and record transactions. Almost 6700 different cryptocurrencies are traded globally that includes Bitcoin, Dogecoin, Ethereum, XRP, and many more.
The use and trade of cryptocurrencies have been rising globally with new-age digitization. Tesla recently announced an investment of $1.5billion in Bitcoin that played as a great impetus for the cryptocurrency industry.
The cryptocurrency industry is flourishing on the other hand. However, the Indian Government is all in support of the industry’s growth, but only with government entities.
Stakeholders & the Government
India has a total of 7million stakeholders who have already invested in Bitcoins. If the ban comes to action, the government would have to reimburse the amounts invested by these seven million stakeholders. The total amount invested in Bitcoin from India sums up to over $1billion. The enormous pressure of this ban would therefore settle both in the hearts of the government and the investors while many other investors are still waiting for the declaration of the national cryptocurrency. With RBI’s presentation of the Rupee Cryptocurrency, a lot is expected to change in the nation’s digital asset market.