Cryptocurrency or bitcoins was introduced by Satoshi Nakamoto in 2009. A cryptocurrency is a digital form of currency that regulates through one and only medium that is digital. Bitcoin is a new electronic cash system that uses a peer-to-peer network to prevent double-spending. It’s completely decentralized with no server or central authority. It has many benefits like it has very clear transactions one can easily see all transactions but cannot access the individual behind it, easy to manage; value fluctuation does not depend on any private or governmental institution it’s on demand.
Indian Government’s Stand on Bitcoin and other cryptocurrencies
The Reserve Bank Of India (RBI) since the year 2013 significantly have shown concerns over cryptocurrencies. It has advised caution on its use. Three notification has been issued by RBI on virtual currencies. In a December 2013 notification, the RBI said, “The creation, trading or usage of VCs including Bitcoins, as a medium for payment are not authorized by any central bank or monetary authority. No regulatory approvals, registration or authorization is stated to have been obtained by the entities concerned for carrying on such activities.”
Without any doubt, we can say that there was a use of cryptocurrency in India before. but the whole scenario fluttered after demonetization introduced in November 2016. Rapid boost has been noticed in the usage of virtual currency especially bitcoins. Bitcoins were safe and simple option for them to hide their illegal money.
A petition was filled through P.N.Razdan expressing concerns over cryptocurrencies, stating that it can be easily utilized to conduct transactions for any illegal frame of work, tax fraud or taking money out of the country. And pleaded court for urgent direction over it.
Bitcoin may also bring severe damage to the market value of other commodities. In reply to the petition, supreme court asked the government to respond in the matter. and also has issued a notice to market regulator SEBI and RBI, the ministry of finance, law and justice and information technology. Securities Exchange Board of India (SEBI) said that if bitcoin is considered as a commodity derivative then SEBI might regulate it. In countries such as the US, the Sebi-equivalent regulatory body is looking into cryptocurrencies. In a recent update in December 2017, finance minister Arun Jaitley told the media that the government doesn’t consider bitcoin as a legal tender and it is working on recommendations for such currencies.
As India is moving towards digitalization so there is a probability that Indian government in coming future will soon begin accepting virtual currencies. But maybe after clearing all their queries and limitations. Making it safer for common people to use. It will be a great task for the Indian government to bring these types of currencies accessible to a common Indian citizen.
Editor’s Note: I am RUCHIKA DHRUWEY, working with “INH NEWS channel”. INH News especially covers Chhattisgarh news. Besides that, I am pursuing my graduation in journalism and mass communication in Guru Ghasidas Central University.