Cryptocurrency gained momentum worldwide during the pandemic outbreak.
On the 24th of November 2021, the government made known to the public its intention to ban private cryptocurrencies. According to them, a bill "Cryptocurrency and regulation of official digital currency" will be introduced in the winter session of the parliament, beginning on November 29.
Cryptocurrency expert, Sunil Raveendran, who works with a Technopark MNC in Thiruvananthapuram, explains the importance of digital currency. In his explanation, he talked about Crypto exchange, Cryptocurrency's emergence as an asset class and future of digital currency in India etc.
What Is Cryptocurrency?
Cryptocurrency is a collection of binary data which is designed to work as a medium of exchange. Individual coin ownership records are stored in a ledger, which is a computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of the coin ownership.
Cryptocurrency are flat currency that does not exist in physical form and is not issued by a central authority.
Bitcoin In India
Bitcoin is the most popular type of Cryptocurrency in India.
How it started.
2008
Published by a pseudonymous developer called Satoshi Nakamoto
2010
Bitcoin was used by a customer to purchase pizzas.
2011
Cryptocurrencies like Litecoin, Namecoin and Swiftcoin emerged.
2012 - 2017
There was an increase in the price of Bitcoin from $5 to $1000 between 2012 - 2017.
October - November 17
Two bills requesting for the ban of Cryptocurrency and regulation of Cryptocurrency.
2018
There was a breakdown in Cryptocurrency.
2019
A recommendation on the ban of private Cryptocurrencies in India was submitted.
2020
Supreme Court strikes down RBI's banking ban of Crypto.
2021
Introduction of a bill to ban Cryptocurrency in India In the winter session of the parliament.
What Will Happen After?
If the government eventually bans Cryptocurrency, transactions between bank and Crypto exchanges will stop. Convention of local currency to buy Crypto will be impossible.
The RBI has repeatedly reiterated its strong views against Cryptocurrencies saying they pose serious threats to the financial stability of the country.
"The bill seeks to prohibit all private Cryptocurrencies in India. However, it allows for certain exceptions to promote the underlying technology of Cryptocurrency and it uses"
According to Nischal Shetty, regulation could be a positive thing for the Indian market.
If Crypto is banned, it will result in loss to investors as well as to employment opportunities provided due to the block chain technology.