Started in 2009 by Satoshi Nakamoto to act as a fiat currency alternative, Bitcoin has become a vibrant value of exchange. It has become the best alternative for looking to evade government currencies and economies. At the same time, other cryptocurrencies have risen with various crypto exchanges coming up.
As most people adopt decentralised cryptocurrencies, the government is losing its absolute power over the economy. As such, various governments are coming up with regulations to control crypto usage. While some countries like the USA and Australia have accepted digital coins, other countries like Nigeria and China ban cryptocurrencies.
A blanket India bans crypto or acceptance for cryptocurrencies makes it easy to deal with. You understand whether you can buy and trade the currencies or not. However, a challenge comes when the country becomes indecisive. No matter how the crypto market moves, investors in such countries are never sure what to do. They don’t know whether their investment will blow due to a ban or flourish.
That is where India belongs.
The current position of crypto in India
India has a challenging relationship with cryptocurrencies. It was one of the first countries to accept cryptocurrencies. With one of the largest unbanked populations in the world, digital currencies, due to their online access, seemed like the ideal solution.
What looked promising would not last as the government suddenly got interested in controlling crypto use. The Reserve Bank of India (RBI) in 2018 released a circular requiring all crypto-related services to become regulated. At the same time, the finance ministry issued a statement that the government does not approve of cryptocurrencies as a means of value exchange.
That was not to be the last change as the government in 2019 banned crypto use in the country. It prohibited the nations from holding or transacting using cryptocurrencies. At the same time, it stopped crypto exchanges from offering the trading platform for buying and selling the crypto exchanges.
This was, however, to last for only a few months as the Indian supreme court came to the rescue of the crypto users. The court upheld the central bank’s order banning crypto use in the country. It then encouraged the government to take a clear position and draft laws guiding the crypto sector.
So far there is no regulation guiding crypto use in the country. Instead, the country remains uncertain about the place of the cryptos in the economy.
The future of crypto use in India
The future of cryptocurrencies in India remains in balance. The government is yet to give a clear guideline on crypto use in the country. However, there have been rumours of a possible crypto ban in the country.
The RBI has voiced its concerns over the perceived economic instability due to cryptocurrencies. This relies on the volatile nature of digital currencies. The investors are already aware of the possible crypto ban India looming.
Even though it is not official, all these rumours point to one thing; an India crypto ban. While this might be fronted as consumer protection, in reality, it is a way to pave the way for the launch of India’s national digital currency. India’s central bank is already in the advanced stages of setting up the coin. All this time, the investors in India remain uncertain about the state of their assets.