A couple of days back, India’s junior finance minister, Anurag Thakur said that Bitcoin and other digital assets should be regulated and that a bill was being finalized for the same. India plans to ban private cryptocurrencies such as Bitcoin. This bill has not been released formally yet.
However, it is apparent from Thakur’s speech, that the government is set to come up with strict laws for people who own digital stashes.
Why Cryptocurrencies Should NOT Be Banned?
Here are some reasons why banning cryptocurrency is not a good idea:
- If India bans cryptocurrency, it will have a negative impact on the early-stage startups, since they would not be able to raise funds. Due to the COVID-19 pandemic, the country is in a widespread recession and this ban is only going to worsen the situation of startups.
- Over 5 million Indians own crypto and this number is increasing with time. A ban on dealing in cryptocurrency would adversely affect existing businesses and in turn, lead to the erosion of wealth of millions of people.
- Nischal Shetty, founder and CEO of WazirX says that this ban will have a downstreaming effect on the industry that processes and facilitates trade of digital tokens. According to him, “The move will hurt not just the exchanges. There are tens of thousands of traders who earn a living through trading in crypto assets. There are YouTubers and influencers who earn a living teaching people about digital currency and crypto trading. There are thousands of developers who are building apps and public Blockchain platforms Ethereum. What happens to their future?”
On Monday, Elon Musk-led Tesla Inc. announced that it had invested $1.5 billion in Bitcoin. The company also said that it might also start accepting cryptocurrency as payment for orders.
Paypal is also going to launch Crypto Exchange soon. Cryptocurrency will be available as a payment method at PayPal’s merchants later in 2021.
Apple is also planning to invest in Bitcoin.