There have been reports that several banks have frozen account cryptocurrency exchanges in India, while the registrar of companies (ROC) has stopped registering companies intending to act as such exchanges
In a move to regulate the cryptocurrency market in India, Finance Minister Arun Jaitley today cleared that it is not legal tender and it will discourage its use.However, he mentioned that the government will look at the utilisation of blockchain technology.
During the run-up to the budget, there have been talks that the government could come out with a roadmap to regulate the cryptocurrency market. There has been rising craze among investors to put in their hard-earned money into the highly volatile cryptocurrency market setting off alarm bells in the government.
- Cryptocurrency considered an illegal tender in India and govt will not encourage its growth.
“I believe the government is failing to understand that cryptocurrencies are not about speculation and trading but there’s much more to it. Many cryptocurrencies like Cashaa & Ethereum have a strong use case especially for developing economies like India. Government is presently in a state where they don’t know what exactly is the right decision and approach towards regulating cryptocurrency. It has to be a dynamic approach and will change according to how markets adopt it. GST can be taken as an example, it changed dynamically with the market response. The same thing will happen will cryptocurrencies, the present stand might be little harsh just for the stake of counterfeiting scams and illegal trades but gradually it will slow down towards a better approach. As our government and Prime Minister is very futuristic towards technology and would always encourage technologies that will push humanity forward.”
2. Govt to explore BlockChain technology to strengthen digital economy
“The use cases of Blockchain are not just limited to cryptocurrencies but a lot more than that can be achieved. It is just the beginning, moving of land records into blockchain could save million dollar scams and bribes. The system can be made more deterministic and optimized. Our very own digital identity Aadhar can be brought into blockchain which will open up a completely new shift in the technology world, Auxesis Group’s Auxledger with over 50 million people is an outstanding example for using blockchain technology for digital ID. Digital identity of users will kickstart a new ecosystem in blockchain based solutions, many use cases like profile scoring of individuals based on karma points can also be done.”
Inputs By Kumar Gaurav, Founder & CEO, Cashaa: