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Indian Government Wants To Ban Cryptocurrencies

Photo by Ewan Kennedy on Unsplash

The recent news that’s coming from a major Asian country, India, is that the government there wants to ban cryptocurrencies. Although they’ll give time for investors to liquidate their crypto investments, the decision is final and is being discussed in the current budget session. This decision will affect people in more ways than they can imagine. 

India has had a bittersweet relation with Bitcoin and other Cryptocurrencies. This is not the first time that India is taking completely different decisions than what the world is taking. In fact, in 2018, the Indian government banned Cryptocurrencies after several scandals involving fraud.

Two years after the initial ban, some cryptocurrency exchanges filed a lawsuit to challenge the ban. In March 2020, trading and transactions in Cryptocurrency were once again permitted in India. The recent news seems to reverse the changed position.

Investment in cryptocurrencies is massive in India. More than 7 million investors in India have invested around $1 billion in various Cryptocurrencies. The government now says that investors will have 6 months to liquidate their investments. This sudden shock to the market may cause major price changes in Bitcoin and other Cryptocurrencies.

Will The Indian Government Completely Ban Cryptocurrencies? 

Trading and transaction in Cryptocurrencies will be banned by the Government of India. The Cryptocurrency and Regulation of Digital Currency Bill is responsible for this new rule.

But there are two interesting points in this bill, which indicate that there won’t be a complete ban. The first is that India may launch their own cryptocurrency in the near future, just like China did in 2020. China banned trading and transaction in Cryptocurrencies in 2017 and is now testing their own new cryptocurrency in Beijing.

The second point is that the Indian government may use Blockchain, the technology behind cryptocurrencies, to make developments in different sectors in the country. An issue that a lot of countries face is the counting of votes during elections. It recently happened in the US. By using Blockchain technology, India can benefit heavily and identify any attempts of fake votes.  

How India’s Take On Cryptocurrencies Is Different From Other Countries?  

While the prices of Bitcoin and other cryptocurrencies are on a rise, India continues to embark on a completely different path. Many major companies like Tesla, PayPal, Mastercard & Visa will start accepting payments through trusted cryptocurrencies.

The biggest critic of cryptocurrency, JP Morgan accepted that the future of finance is crypto. Tesla recently invested $1.5 Billion in Bitcoin. After such major decisions by Multinational companies, people who thought of Cryptocurrency as a bubble have finally come to terms that crypto is here to stay. 

As Cryptocurrencies become more secure and offer fast transactions, it is just a matter of time before all the major countries accept them and start implementing them. With all these benefits, the Indian government might rethink removing the ban from cryptocurrencies in the future.  

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