Investors are having a tough time digesting the fact that India might ban Bitcoin. Recent reports suggest that this step might be taken by the government in favour of a homemade digital cryptocurrency. I don’t see the point in this and even understand what the government is trying to accomplish. And it is not just bitcoin, but the government plans to ban every other private cryptocurrency out there.
The government’s plan to ban Bitcoin
The most recent bill announced by the government plans to restrict all private cryptocurrencies in the country. And at the same time, the RBI will be issuing its own digital cryptocurrency. There are a lot of problems with this rule. The first and foremost being the regulation of the government. This might introduce tax and make cryptocurrency transactions taxable. And since the government of India has power over both the Lok and Rajya Sabha the bill will most probably come into effect.
Even in 2018, the government talked about taking steps against the use of cryptocurrency in the country. At that time, the government planned to jail the offenders for 10 years, but that didn’t come into effect permanently. This was because the supreme court out ruled the government orders. India’s finance minister also said that they do not take responsibility for the transactions made in cryptocurrency. And they will also try to stop such illegitimate assets from becoming part of the payment system.
What happens if Bitcoin gets banned?
If Bitcoin gets banned in the country, investors might lose access to the coins they own. So, it is best that they exit the market while there’s still time. If the government makes it clear that they are not going to ban Bitcoin, they can enter again. And if not, then one can’t do anything. This might also affect the price of the cryptocurrency adversely. According to an estimate of around Rs, 40,000 crores worth of transactions in Bitcoin is made annually in India. So, if the ban does happen, the market is surely going to see that.
But the main problem is the thought process of the government. Why do the India government have to ban everything and make its own version? No idea! People should have the right to choose what they want in the country and what they don’t. And if no one has any issues with Bitcoin and other cryptocurrencies, then there is no point in banning them.
What are your thoughts on the fact India might ban Bitcoin? And if it does will you be interested in the national digital coin? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.