Can Crypto currency upheld the integrity of Indian Economy ?
Blog: NASSCOM Official Blog
A historic judgement passed on Wednesday, 4th March, 2020, as India’s Supreme Court lifted ban on the trading of Crypto Currency in India. RBI banned the use of Crypto currencies in 2018, and this order from the Apex Court brings joy to the traders of Crypto Currency.The Crypto industry is estimated to have a market capitalization of approximately about $430 billion globally and after the upliftment of this ban, it is estimated that India would contribute somewhere around 2-9% based on the estimates to the crypto world. Let’s see whether this is a good news or for the investment ecosystem.
What is Crypto Cryptocurrency?
Crypto Currency is nothing but virtual currencies which uses nodes, hash’s, and cryptographic-ally codes to make financial transactions. It is not controlled by any central authority and two parties are involved where transactions are made with the use of private and public keys where identities are anonymous.
Why Cryptocurrency was discouraged?
According to RBI, any type of virtual currencies is purely speculative in nature with no security attached with it. It gives no sign of money transaction that has been made and all the transfers made are anonymous. Virtual platforms have a risk from hackers, malware and operational glitches.
India is a bit backward in technological part and government found that there’s not much good opportunities for such infrastructure to grow. This cannot be regulated and cannot be controlled and hence due to various reasons it was banned and was considered not a Legal Tender in India.
What benefit it brings Investors after the ban is lifted?
I view the lift of the ban as a forthcoming step. With the regulation now in place, Cryptocurrency firms would start focusing more on security and privacy and Anti Money Laundering Policies. This Upliftment of ban will open new opportunities for India in terms of new investments, economic growth, financial transactions and would open new segments for employment as well. As per the petitioners who challenged RBI’s circular, the total number of investors in Indian Crypto market was approximately 20 lakh and the daily trade volume averaged Rs 150 crore in 2018 and it will be increased now in the coming decade.
In the ruling , the bench, headed by Justice Rohinton F. Nariman, overruled central bank’s circular on the grounds of dis-proportionality.
This decision will likely place the responsibility for regulating digital commodities like bitcoin in the securities market regulator, SEBI.
Advantages of the quashed order –
- As our Prime Minister Mr Narendra Damodar Modi , aims to digitize the whole country , this step of government will take closer to the goal of ” DIGITAL INDIA”.
- Indian Banks can now deal in digital currency, which will make it easier for people to trade on virtual exchanges(crypto).
- This judgment of the Apex court will open the gates for companies like Ripple in India. Ripple is the only enterprise block chain company today, with products in commercial use. It provides the transaction at faster, lower and smoother rate.
- Now transactions will be done one to one by using peer to peer networking structure that would cut down the middle men giving greater clarity in establishing audit trails. The exchange of information is done on a “push” basis, whereby you can transmit exactly what you wish to send to the recipient – and nothing besides that.
- Using this mechanism of the cross-border transfers and transactions may be conducted without complications over currency exchange fluctuations and may increase the FDI’s. There are currently over 1200 unique cryptocurrencies in circulation worldwide, and for this acceptance it was important for India to have such legality.
- It will attract new foreign venture capital investments into Indian startups, boosting the Indian economy.
- Nischal Shetty, CEO of crypto exchange Wazirx, says,” Job growth is among the major benefits crypto and can help his country’s economic situation.” So basically, this will create employment among the economy.
- There will be need of more skilled and tech savvy people who can now work for cryptocurrency startups and help in training which will increase the skilled humans and will merely enhance the employability.
PARTING THOUGHTS
It’s an evolutionary decision for India and a good news for Indian Economy. Now the entire country can participate in this Cryptocurrency revolution. It will take a bit time to adjust and come and give something to the economy as a better infrastructure is required.
Let’s see how much Cryptocurrency can take Indian economy forward.
BRIEF PROFILE
The post Can Crypto currency upheld the integrity of Indian Economy ? appeared first on NASSCOM Community |The Official Community of Indian IT Industry.
Leave a Comment
You must be logged in to post a comment.
