Could not fulfil the largest democracy?

August 26th, 2020 by

Could not fulfil the largest democracy?

Whereas many developed and semi-developed countries have started accepted the era of cryptocurrency, India might be on their paths this time.

Although, it was all hushed back in the day, now, the India Government is reconsidering banning cryptocurrencies majorly Bitcoins.

The finance minister is already seeking consultations from the ministry. The headline of Economic Times dated 21 August 2020 said that “India is looking to introduce a law to ban cryptocurrencies, as the government always sees a legal framework better than a circular from RBI.”

This means that the world’s largest democracy is highly not comfortable accepting so much of the decentralization of the movement of currency.

The finance minister has issued a note that may resemble a bill to ban cryptocurrencies proposed by the interministerial committee (IMC) headed by Finance Secretary Subhash Chandra Garg.

QUESTIONING THE LEGALITY:

In 2018, finance minister Arun Jaitley clearly stated that the Indian Government does not recognize cryptocurrencies like Bitcoin as legal tender to support the buying and selling of commodities. He further added that the Government would take all the necessary measures to eliminate the use and practice of these currencies.

All these issues were highlighted in the finance budget announced on 1 February 2018.

The finance minister stresses on promoting blockchain technology of payment systems instead mention about bitcoin exchange and its usages.

However, this issue has now risen again and is going strong. The supreme court has termed some of RBI circulars as “unconstitutional.”

Many have termed India’s current financial health as being on a crossroads. The reason is that on one side, the country wants to prosper with leading technology promoting blockchain technology. Still, on the other hand, they hesitate to adopt the new age technology. You can read more here with sguru.org

IS THE GOVERNMENT INSECURE?

The answer to this question might be yes! Since it is clear to use that most cryptocurrency that run of blockchain technology is as decentralized as it can be. This states that they do not have a URL or an IP address to track.

A bitcoin address can be run and owned by anyone, and they can be anywhere around the globe. This makes the Government helpless as there is no central point, and they cannot practice their veto power over things they are usually used to. They can neither interfere nor block any bitcoin address as it runs on multiple nodes.

Bitcoins run on a peer-to-peer basis. In layman’s terms, if you have Bitcoins with me and I want to transfer it to you, there is no way that the Government can interfere or restrict these transactions.

Now point to be noted is that RBI never mentioned the word “ban” back in the day. However, now it is on the verge of the ban is a separate issue.

RBI has only instructed every organization that is being regulated by the central bank not to entertain any business that is in any way related to cryptocurrencies. This means that the banks are not allowed to either deposit or withdraw any digital currency.

This spread like wildfire and was portrayed as a ban on bitcoin, whereas back in the day, it was just restricted.

Also, RBI had issued warnings regarding the scam involved with the dealing of cryptocurrency. Many social experts and economists have argued that Prime Minister Narendra Modi would let go of a booming sector so soon. Some experts have hopes that this might prove invalid, and the banning of such currencies would be lifted.

The majority of countries have accepted their fate and have started dealing with bitcoins. Still, the reality is every Government wants to ban this as it overshadows the current flowing mode of exchange, which is the fiat money. But because of its enormous audience, almost every Government has tried to stop it. Sometimes, wildfires are not containable; such was the case here. Governments failed to put a total ban on it as it was getting people free from the government’s shackles. Eventually, they had to give in and announced that there would be proper regulations for the trade of bitcoins and not be banned completely as it might create a state of emergency in the country.