The effect of digital currencies has been a matter of concern for the Government of India. Cryptocurrency did get banned in the past, but it lifted when it was concluded that banning is not the solution. History recommends that efforts to forbid cryptocurrency did not stop it from making India the highest number of crypto owners at ten crores.
After the proposal of Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 by the government, stating: To create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses. After this news spread, there was a panic selling without any information about what the government means by private cryptocurrencies.
So is it Possible to Ban Cryptocurrency?
Several reasons may say banning cryptocurrency is not possible in a snap.
- A digital currency comes up short on liquidity, so it may be hard to boycott the tokens.
- The bill does not have complete information about how the government plans to prohibit private cryptocurrencies.
- There is no proclamation about what they mean by Private Cryptocurrencies.
- Cryptocurrencies can be a great help in the growth of the GDP rate. So why will the government not take advantage of it?
- With a good deal of crypto investors leading to the development of the blockchain environment (NFTs, metaverse, etc.), banning cryptocurrency will not be the right decision. It will cost a fortune to many entrepreneurs as well.
- Many experts claim that cryptocurrencies cannot be banned because they are fragments of computer codes.
- The ban of cryptocurrencies may lead to an increase in black market transactions.
CEOs of various Crypto exchange applications asked to have faith in the lawmakers and were confident about crypto not getting banned but regulated. And to regulate the inflow and outflow of cryptocurrencies, a report by a rising technology proposed that the government can instigate its crypto locker to ensure verification among the transactions.
There are investors from all over the country that are now a part of the Crypto Party. Since the ban was lifted in March 2020, crypto has seen exponential growth, 400% precisely. Youngsters from tier-2 and tier-3 cities are using crypto as their investment option.
“Banning is not the solution, proper regulation is.”