Cryptocurrencies are digital currencies, usable in different transactions and have volatile market values. However, the whole economic structure follows blockchain technology. This makes the system transparent and secure in nature. In spite of that, the volatile market value and other external factors cause economic disbalance in a country.
Moreover, the system will eventually impact all the citizens and poor economic stability as well. Recently, the Indian finance minister Nirmala Sitharaman stated, that RBI wants to ban cryptocurrency in India.
It was the predictive approach, as the government had already implemented the “Shadow Ban” in India. The unavailability of a cryptocurrency exchange has already stopped the economic expansion of digital currencies. The government finally declared on official documentation, that RBI wants to ban cryptocurrency in India.
RBI wants Cryptocurrency Ban, Reason behind Indian FM Statement
This overall statement came from the response to the five written questions from Thirumavalavan. Tholkappiyan Thirumavalavan, better known as Thol, is a political leader in south India. Moreover, he is a social activist and scholar as well. He presented five particular questions on crypto exchange and the future in India.
In response, Nirmala Sitharaman the Indian finance minister statement on crypto ban. In this case, it becomes essential to understand the government’s perspective and upcoming consequences.
Every major economic step in a country comes with major and minor consequences. Though an irregular crypto exchange may cause different issues, the digital currency expansion can’t be ignored. Primarily, India will lose the market due to a lack of digital adaptation. This will not only lose economic stability but also will affect international transactions.
Cryptocurrency transactions are already available on different digital platforms and countries. The technology also presents security management and transaction transparency. In that case, the technological advancement will also sacrifice itself, in this decision. Lack of global acceptance may harm the overall value of the Indian economy in the worst-case scenario.
In May, a senior government officer, Ajay Seth, has also shown objection to this decision of RBI. He stated, “whatever we do, even if we go to the extreme form, the countries that have chosen to prohibit, they can’t succeed unless there is a global consensus.’’
Solution or Alternatives?
The questions, related to the crypto wave in India, is under media focus for the last 10 years. The digital currency model and exchange systems are already working in the countries. In this case, the finance minister was also responsible to answer the several ideas and concepts of media agencies.
She has declared, that crypto exchange and currency implementation will require collaboration with other countries. Economic connections or collaborations basically present an agreement that holds the economic policies and transaction category details. Moreover, the system establishes more security and credibility in the structure.
The crypto ban in India may also be replaced by new technology or policies from the government of India. Different financial research has already shown the positive impact and possibilities of the digital currency in the country.
In this case, the government and other authorized bodies are also trying to implement the best policies and regulations on cryptocurrency. But crypto ban in India will surely lead to severe consequences.
The government will require conscious observation and hard steps to cope with global economic change and digital shifting as well. The new regulations still remain to implement. This will still go through a lot of discussion and formal meetings.