Why cryptocurrency ban is not good for Indian economy?

From demonitization to crypo ban, everything about India is changing at the speed of light. Every day we come across news leaving us with dropped jaws. Indian government has recently come up with a new idea to squelch tthe nation more by bringing a new bill known as ‘Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’ to tape a ban on all the Private Cryptocurrencies operating in India.  It has brought all the private stakeholders of crypto exchanges acute headache. After when the bill is passed, the only cryptocurrency would be the ‘Official Digital Cryptocurrency’ issued by the Reserve Bank of India, the central bank of India.

This is déjà vu. It has happened earlier. In 2018, Reserve Bank of India issued an order imposing a ban on financial firms dealing in trading of cryptocurrency. The punishment was more shocking and barbarous than the ban. The panel headed by the finance minister recommended a penalty of 250 million and an imprisonment of 10 years if an individual was found mining, trading, generating, holding transferring, or selling digital currency.

A breeze of relief fluttered among the tensed stakeholders when a couple of years later cryptocurrency was flashed with a thumbs up by the honourable Supreme Court. But the boomerang of crypto ban is approaching us once again. We can’t do anything about it. This is new India!!!

Indian government is full of double standards. Our government’s words and actions are contradictory in nature. The government has been portraying hypocrisy by calling for ‘Digital India’ campaign where the authorities are promising to transform every element of governance into paper less avatar but on the other side it is hesitant of letting cryptos do the hustle bustle in India. The country is practicing intense capitalism but cryptocurrency is not finding any luck in India .Getting slapped with ban every once in a while is really humiliating for non-public share possessors in crypto exchanges. They are putting in gigantic efforts to hatch the crypto ecosystem to be the safest in India.

Indian government should avoid convenient privatization and take a venture on virtual currency. If the decision makers can privatize major fields harbored on their motherland including space, coal, defence, atomic energy, aviation and power distribution then why not currency?

 Even after explaining the entire cumbersome process of KYC (Know-your-customer) and double security checks which would be done by the crypto exchange owners, the government is not nodding to the private crypto movement in India.  Kumar Gaurav, founder and CEO of Cashaa, said that considering the fact that cryptocurrency is global and decentralised, government cannot ban cryptocurrency. Something like that has also been conferred by Rahul Pagidipati, CEO at Zebpay. He said that as per the bill, private cryptocurrency is soon to be forbidden but technically Bitcoin is not privately owned by anyone. It is more like a public good. So it all depends on the definition of what the Indian government demarcates as private cryptocurrency.

This is not the first time, India has been shying away from taking bold steps which is the prime reason that even after possessing more than a million engineers, India is not completely digital  yet. Where all the countries are entering into the era of digital currency and strict encryption, Indian government intents to wait for one more century to be decisive whether it is safe or not? Its time that India becomes intrepid.

There are other alternatives to imposing ban like stricter verification, cross checking, biometrics, strong encryptions and unconquerable algorithms. Bans are not healthy for India’s pledge to more and progress towards digitization. Not endeavoring for safety and choosing complete closure to the concept of digital currency may not be pretty idea. It is the moment to acknowledge the fact that digital currency is the future currency. Sooner or later we have to adapt to it. So why not today?

References:

https://www.indiatoday.in/business/story/supreme-court-quashes-rbi-ban-on-cryptocurrency-1652254-2020-03-04

https://www.india.com/business/cryptocurrency-ban-in-india-nation-plans-to-introduce-a-new-law-to-prohibit-all-private-cryptocurrencies-budget-2021-session-bill-4372113/

https://www.youthkiawaaz.com/2020/12/do-we-have-too-much-democracy-in-india/

https://www.indiatvnews.com/business/news-govt-unleashes-major-privatisation-reforms-in-coal-defence-power-distribution-and-space-sectors-617791

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