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Entrepreneurs and Investors Insist on Legal Aspects of Speculated Crypto Currency Ban

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Prismetric Technologies
Entrepreneurs and Investors Insist on Legal Aspects of Speculated Crypto Currency Ban

Recently, there was hashtag rage #IndiaWantsCrypto on Twitter by major crypto players such as WazirX and CoinDCX. And, jumping on the bandwagon were many other investors, entrepreneurs, and startups. Why? It all started after a speculated ban on the crypto currency by the Government of India in aid to start its own digital currency (called CBDC – Central Bank Digital Currency) through RBI.

If media reports are to believe, the GoI could choose the ordinance route for passing the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021

There are a number of budding crypto investors with foolproof plans to grow their businesses with digital currencies, especially Bitcoins. It is also speculated that many of such inspiring investors and big shots from each industry have sent an email to the members of parliament on why India should refrain from prohibiting cryptocurrency. It is also speculated that legal help is sought to ease the law if at all it takes place in the rule book. The ongoing budget session could see the Crypto Currency and Regulation of Official Digital Currency Bill, 2021. The country’s crypto exchanges seem to take a big hit due to the ‘ban’ announcement, and there has been a sincere attempt to prevent a complete ban.

Balaji Srinivasan, a former Coinbase CTO, and Andreessen Horowitz general partner even penned down their thoughts on why Indians should invest in Bitcoin. The blog claimed that improved and widened adoption of cryptocurrencies help enhance national security. Other pros mentioned included preventing de-platforming and improving international capital and strengthening fiscal policy by ceasing financial fraud. Obviously, proving the nation’s comprehensive technological advancement and fastening India’s ascendance as a global leader is a few other knock-on benefits.

In the interim, there are sources that the GoI perhaps face the wrath of many if they seek a complete ban on cryptocurrency. While Bitcoin and Ethereum are internationally labeled as public cryptocurrencies, CoinDCX cofounder Sumit Gupta lately said on Twitter that the Reserve Bank of India had previously categorized them as private cryptocurrencies. It is still not clear whether or not the government wants a complete ban on cryptocurrencies.

If RBI creates its own digital currency, India won’t be the first country to do so. For instance, China has been working on it for years. The banks in China have worked hand-in-hand with their government, local vendors, online and offline stores, and many more. Even further, the central banks of the UK, Canada, Hong Kong, Japan, and Singapore are at advanced stages of creating and prototyping those systems. In most countries, the regulators release tokens where cryptocurrencies are legal. The Reserve Bank of India hasn’t issued any. Thus, the present crypto business falls under a technology service rather than a financial transaction.

Cryptocurrency is decentralized and hence, there is no one authority to it. The validity of such a currency is digitalized and the transactions are through Blockchain technology, the most trusted one so far. The RBI has already stated that it is working toward bringing macroeconomic stability in India, especially post-pandemic. Nevertheless, the central bank has not uttered much about a complete ban on crypto currency. Let’s see, India Inc is hopeful that whatever they come up with, it would have some positive impact.

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