India's Ban on Cryptocurrency

This news has around for quite some time, but things are getting serious in INDIA as the government is said to take serious actions on the  cryptocurrency industry.

This is going to be a huge setback for all the crypto investors and startups in INDIA and this will lead the country backwards in the field of finance and wealth.

 The committee while suggesting a crackdown on cryptocurrency has strongly batted for introduction of an official digital currency or ODC which can be provided the status of a legal tender regulated by the Reserve Bank of India. 

A Draft bill has been proposed for the Ban of cryptocurrencies and this is currently being reviewed by the officials.

The reasons they give for the ban of cryptocurrency are

 1) All the cryptocurrencies have been created by entirely private enterprises.

2) There is no underlying intrinsic value of these cryptocurrencies back they lack all the attributes of a currency.

3) There is no fixed nominal value of these private cryptocurrencies i.e. neither act as any store of value nor they are a medium of exchange.

4) Since their inceptions, cryptocurrencies have demonstrated extreme fluctuations in their prices.

5) These crytocurrencies cannot serve the purpose of a currency. The private cryptocurrencies are inconsistent with the essential functions of currency, hence private cryptocurrencies cannot replace fiat currencies.

6) A review of global practices show that the have not been recognized as a LEGAL tender in any jurisdiction.(but they have been in China)

7) Committee also recommends that all exchanges, people, traders and other financial system participants should be prohibited from dealing with cryptocurrencies.

The country being so cruel on a developing asset class and technology like cryptocurrencies is taking them back to the stone age.
 

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