Ban of Bitcoin India – Digital Currency Bill 2021

There was a recent meeting held between the Modi government and the reserve bank of India. Both the authorities were actively present in the meeting, and there were several talks dependent on cryptocurrencies. The Cryptocurrency and Regulation of Official Digital Currency Bill 2021. RBI governor Shaktikanta Das was the one who was pretty much concerned about the craze of cryptocurrencies in India despite it is not a currency. The craze of bitcoin is booming in India, and because of this, the reserve bank of India authorities are concerned about it. It is very some matter that even if the cryptocurrencies are not physically existing coins, they are used at a massive scale.

India Digital Currency Bill 2021
Crypto Bil

On the other hand, the Modi government took the opposite stand. It was said by the government that there is a critical need for different departments to look at thriving cryptocurrencies. Rather than placing a complete ban on cryptocurrencies, it needs to be regulated and controlled correctly at . There must be stringent rules and regulations in the movement of this cryptocurrency to prevent it from being used for the purposes like money laundering and terror financing. The fear of terrorism and money laundering is enormous in the country. It is because there are different methods by which people can use cryptocurrencies for bad things.

Hence, the government’s concerns are also legit, and both the authorities have to take a stand for the best-case scenario for the nation.
The meeting was held on November 13, and the authorities told an interview that the government is very well aware of the increasing craze of cryptocurrencies. It is very modern technology and therefore, it requires very close attention and watch. If uncontrolled, people can use it for malpractices that can not work in favour of the nation. Therefore, the government and the concerned authorities are looking forward to taking proactive steps to control the movement at the right moment.

Since bitcoin started to get a massive increase in its prices and gain popularity in the country, the RBI was continuously not in favour of the same. The primary concern for the reserve bank of India authorities is that cryptocurrencies are entirely decentralised. They are very fluctuating, and therefore, they can pose a grave threat to the economic and financial stability of the country. Also, the macroeconomic factors are highly affected by the cryptocurrencies like bitcoin, and therefore, they are not capable of becoming a part of the financial system of any country. Also, the RBI governor was very much concerned about the increasing number of investors for these digital coins and the increasing market value. Apart from all this, in the meeting held on Wednesday, Das expressed views on cryptocurrencies and said it is a threat to the unregulated system.

Cryptocurrencies or digital coins, and we hope that everyone across the globe is very well aware of it. Its popularity in the world is ever-increasing, and because of this, some governments are very much concerned about it. The primary concern of cryptocurrency growth is threatening the financial system because the government does not regulate it. By the regulation from the government, they can control its movements as well as impose limits. By doing so, they can prevent their currency against the United States dollar and, therefore, prevent them from getting even worse.

On the contrary, if the moment of cryptocurrencies like bitcoin is not controlled, they are believed to take over the existing financial currencies of different countries shortly. Therefore, it is a matter of concern if the cryptocurrency craze keeps on increasing in future. Hence, action needs to be taken from the view of either the central bank or the government.
The central topic of concern for the reserve bank of India is that cryptocurrencies have the potential for imposing a threat to the Indian rupees. If many investors keep investing money in digital coins, they will not invest in the funds and bonds based on rupees.

Hence, it will be tough for the banks to lend money to the customers. Also, being unregulated, the financial system of any country in the world is not capable of tracing bitcoins. Also, when the government cannot trace the currency, it will not levy tax on it. Furthermore, someone can use cryptos for money laundering and other illegal activities. Apart from this, the government will not be able to take action for the scams that happened in cryptocurrencies like hacking and other laws of cryptocurrency coins that are volatile.

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