India is one of the most successful global leaders. Therefore, every decision it makes is influential at the global level. Some essential details and news coming from India are that it plans to ban all private cryptocurrencies in the country. A few days earlier, reports said that the Reserve Bank of India (RBI) is looking forward to expressing its concern in front of the government. Thus, allowing it to take suitable action to suppress the movement of cryptocurrencies within the country. The RBI governor said that the free movement of cryptocurrencies would threaten the country's economy. Therefore, the government is also concerned about the tension that came among the people already using cryptocurrencies. Looking at the increasing trend of cryptocurrency is among the youth makes it very concerning for the government and the RBI.
Recently, the government said that it would soon release a new financial regulation bill. Also, there will be a bill for cryptocurrency and regulation of official digital currency that will create official digital currency control. This bill will be under the control of the Reserve Bank of India. It will ban all private cryptocurrency movements within the country. The bank also names two of the top cryptocurrencies across the globe, Bitcoin, and Ethereum. Due to these actions that India will take, the global cryptocurrency market is going to suffer. Additionally, a large share of cryptocurrency investors will not be able to access these digital coins. This could significantly impact the prices of different coins.
To date, there are thousands of cryptocurrencies working outside the regulatory system of the country. However, when the government imposes such a pre-verification approach on these currencies, it will create tremendous obstacles in the path of peer-to-peer transactions. Cryptocurrencies are the only medium of making transactions that removes any intermediaries. Therefore, by banning these cryptocurrencies, individuals will not keep their personal information anonymous while making transactions. Earlier this month, the prime minister of India also initiated a press conference. It addressed the nation, informing the public that it is bad if cryptocurrencies are in the wrong hands. Therefore, there must be complete awareness about using cryptocurrencies for the country's common good.
The government of India is also concerned about the unregulated market as it can impact the country's financial stability. Furthermore, cryptocurrencies, being completely anonymous, can facilitate money laundering as well as Terrace financing. Separate sources of transactions are already a massive problem for the country. Therefore, the use of cryptocurrencies at a large scale worsens the situation. Hence, the worries and concerns of the government are very well addressed. But, people are nowhere close to stopping trading in digital coins until and unless these are entirely banned. India has a fair share in the cryptocurrency market and has an extended partition of the total value. At the beginning of this year, the Indian government also considered if the position, mining, issuance, trading, and transfer of cryptocurrencies could be criminalized, but that was not the right approach.
The new bill that the government is looking to bring forward will discourage the marketing and advertising of cryptocurrencies. However, the primary purpose of the bill is to fade the value of cryptocurrencies to investors. According to the industry sources in the country, there was a separate Parliamentary conference held to address the central issue of cryptocurrency trading in the country. To know more and understand the potential changes you should learn more about bitcoin and blockchain technology.
The primary concern for the authorities is that nowadays, cryptocurrencies are a currency. However, now, the government is deciding to classify cryptos under the asset class. Thus, after the demand from cryptocurrency exchanges, they can facilitate digital coins as assets rather than currencies. However, a senior government official disclosed that the ultimate purpose of slowing down the movement of private cryptocurrencies in the country is to ban them entirely. Thus, allowing the government to make way for the upcoming central bank digital currency.