The government of India’s proposed bill to ban cryptocurrency could deal a blow to India’s technology credentials. Do you agree with this view? Comment
Refer - Livemint
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IAS Parliament 3 years
KEY POINTS
Cryptocurrency
· The unpredictability of Bitcoin and cryptocurrency volatile, erratic in this short time.
· MasterCard announced that it will incorporate ‘select cryptocurrencies’ on its global payment network.
· BNY Mellon, incidentally the US’s oldest bank, announced holding and transferring digital currencies for asset management clients.
· Goldman Sachs announced that it would accept taxes in Bitcoin.
India’s move
· India’s government to ban it through a proposed legislation, the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.
· India tried to ban cryptocurrency once before in 2018, before it was reversed by the Supreme Court. The Bill promises to allow for certain exceptions to promote the underlying technology of cryptocurrency.
· The way the technology is built, an ownerless, consensus-driven, distributed ledger like a block chain needs cryptocurrency.
Consequences of the bill
· India has more than 30,000 block chain innovators and practitioners, and they will now be looking at moving out to friendlier regimes.
· India is the second-largest Bitcoin trading nation in Asia, and all those trades will move to overseas exchanges.
· To shut down cryptocurrency, you will have to shut down the internet. Bitcoin is called ‘digital gold’ for a reason it is limited, and a potential store of value.
· No doubt, there are many problems with cryptocurrency—it is volatile, sucks energy, and is often abused by criminals. But the answer is not to ban it, but regulate it.
Dev 3 years
Please Review and Provide Feedback
IAS Parliament 3 years
Good attempt. Keep Writing.
