Ban on Crypto currency- Boon or Bane?

 Recently, the government has initiated introduction of a new bill to ban crypto currencies like bitcoin, altcoin and create its own digital currency. The idea of ban on cryptocurrency has created a paranoid situation for industry leaders and entrepreneurs. This is not the first time that the topic of “cryptocurrrency ban” has come into limelight. The Reserve Bank of India (RBI) had prohibited the buying and selling of cryptocurrencies for two years before the ban was overruled by the Supreme Court in March 2020. 

The bill drafted aims to “create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India (RBI)”. Governments from all over the world are working to regulate cryptocurrency and its working. However, there isn’t any major economy which has been successful in taking this bold move. The major concern of government includes illicit trading in cryptocurrency. The central bank has time and again raised its concerns regarding the rising usage of digital cryptocurrencies and the growing risks associated with them. Increasing level of black money due to absence of any regulatory body is a huge threat in the usage of cryptocurrency. The government in 2018 cited “various risks associated in dealing with such virtual currencies.” High chances of money laundering, fraud and even terrorist funding may exist.

On the other hand, entrepreneurs and industry leaders criticized the proposal of ban on cryptocurrency and urged the government to consider regulating the crypto currency exchange. Currently, over 7 million people own over $1 billion worth of digital assets in India. Industry leaders view cryptocurrency as the future of new age trading and innovative technology. Proponents of cryptocurrency do believe that there must be digital currency just the way US, China etc. are trying to create their own currency.  However, a complete ban on cryptocurrency would further create chaos. To safeguard the interests of the nation, regulation of the currency is more feasible than imposing a ban on cryptocurrency exchange. There are a lot of countries like Japan which have regularized cryptocurrency under their jurisdiction. 

The need of the hour is to consider the pros and cons of the proposed bill and not curtail the right to buy and sell cryptocurrency. A regulatory authority should be set up to control the working and functionality of cryptocurrency like bitcoin, altcoin and etherium. 

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