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What is being planned in India regarding crypto currency?

If you do business in crypto currency, then you must have seen the news recently in which the Government of India is planning to introduce crypto currency in the country. '

What is being planned in India regarding crypto currency?

''The Government of India has decided to present the Crypto Currency and Regulation of Official Digital Currency Bill in the Parliament. Information about this bill is not yet public. This bill will legally control the use of crypto currency in India. The world is watching every step of India on crypto currency. If this bill is introduced in the next session of Parliament, it will be closely watched by the investors. Union Finance Minister Nirmala Sitharaman has made it clear that the government has no plans to completely ban crypto currency. In fact, the government wants to give defense cover to the technology blockchain based on crypto currency. However, 25-year-old Ruchi Pal's hopes are still very high and he has decided to do business in crypto currency only. She says, "I don't think the government will ban it. Yes they will regulate it but not ban it. I think the same thing happened in 2017 when everyone was talking about crypto currency and some There was action and then it was all over."

 What does she think about the digital currency that the Government of India is considering? On this question, Ruchi says, "It is a very difficult thing. It will not be accepted internationally in the beginning. We cannot use it for international transactions. It is a good idea but we need to accept it like bitcoin." It will take time to do that. It won't make much of an impact on our lives." Indians are buying crypto currency in large numbers but there is no official data regarding this. They do not want to miss the chance to earn substantial profit. A person investing in crypto currency says without making his name public, "I want to make a good profit before it happens if there is a ban. I don't want to miss the opportunity to make money." 

"Digital money is not an asset class to invest in. Therein lies the difference." 

What is crypto currency? Crypto currency is a digital form of any currency. It is not in your pocket in solid form like a coin or a note. It is completely online and business is done through it without any rules in the form of business. It is not issued by any government or any regulatory authority. 

The Central Reserve Bank has again raised the issue of cyber frauds due to digital currency this year. In 2018, the RBI prohibited banks and regulated financial organizations from supporting cryptocurrency transactions. But in March 2020, the Supreme Court of India, while ruling against the RBI ban, had said that the government should 'take a decision and make a law on this matter'. Last month, RBI had once again said that they are exploring options for bringing India's own crypto currency and its practice. A view on the future decision of the government will also be very decisive as to how this currency will be used in India. The government has made it clear that it will give time to the holders of crypto currency to sell it. There is no official data on how many Indians have crypto currency or how many people trade in it, but many media reports have said that crores of people are investing in digital currency and it has increased during the pandemic. 

What does it mean for India to have its own cryptocurrency? Last month, the RBI and the Finance Ministry have said that they will consider making laws for India's own digital currency and its regulation. But it is easy to bring India's own digital currency. 
The government will only give the status of a legal tender to any kind of transaction which can be used by the vast population of India. However, experts say that issuing digital legal tender is challenging. Sajai Singh, partner of corporate law firm J Sagar Associates, says on the challenges of law making that 'Such challenges will arise before the Government of India whether it will be digital legal tenders only at the wholesale level or the general public will also be able to use them?' 

 Will RBI crack down on commercial bank accounts after citizens' digital currency accounts? For this, technological innovation and implementation will also be a big challenge. Apart from this, tax, money laundering, insolvent code, payment system, privacy and data protection will also be big challenges. Monarch Modi, founder and CEO of Indian bitcoin exchange company Bytex, believes that India's digital economy has changed due to Kovid-19. He says, “In the last year, there has been a 42% increase in digital payments due to the availability of the Internet. 

Working through Central Bank Digital Currency (CBDC) has the ability to solve problems that reduce transaction costs in transactions. can reduce." 

Why not support existing cryptocurrencies? 
Vikram Rangala, chief marketing officer at global bitcoin exchange firm Zebpay, says, "Crypto currency like bitcoin and ether is a public property that is not recognized by any nation or has no owner. If you have internet, you can take crypto currency. ." "If a government wants to use crypto currency for the nation's economy and monetary policy, it must make some regulations to control it. There is no need for competition between them. Public and central banks of crypto currency can run side by side." Can." Satwik Vishwanath, co-founder and CEO of Unocoin, another bitcoin exchange firm, suggests a solution to these problems. He says, "Crypto exchanges can collect Know Your Customer (KYC) points and transact through them only through a bank account. In this way, some bad elements will not be able to take advantage of it because in blockchain technology, it provides public transparency.