Recently, the price of bitcoin touched an all-time high bringing a huge smile to the faces of all the crypto enthusiasts and digital asset investors. A few years back, a similar thing happened and the price of the original cryptocurrency reaches its highest at that time. With this surge, many people have got hopes about seeing crypto as a mainstream fintech solution.
Some people even said that cryptocurrency could protect all the people who have been hit hard by the covid-induced lockdown. While that remains a skeptical claim, one thing is pretty sure that Bitcoin along with the rest of the digital assets has a bright future. But the question is, will this be positive for all the cryptos and their supporters.
We cannot neglect the constant uncertainty in this niche because the cryptocurrency exchange software development is still in an incipient phase. Lots of things have to be perpetual and regulated for this technology to be more accessible to people. Especially in India where only a few people understand this technology thoroughly. In the year 2018, the then finance minister Mr. Arun Jaitley said that the crypto-based investments shall be restricted in India, but the scope of blockchain shall be deemed.
Following the union budget, the Reserve Bank of India banned the buying and selling of cryptocurrency using your bank accounts. Recently, this decision was nullified by the Supreme Court of India and many crypto enthusiasts took a sigh of relief. The recent surge in the price of Bitcoin has raised a new wave of hopes in the same fold in India.
Having said that, we must take into cognizance that the apex court has just allowed people to buy cryptos, neither the judicial body nor the government has shown any inclination towards making crypto a legal tender in the country. On the bright side, we have to accept that India is a potential market for every product, and crypto is no different.
With a bustling population of investors and a vision to become a trillion-dollar economy, there are chances that the Indian government contemplates the formal induction of a parallel currency to strengthen the economy. Moreover, getting rid of high-profile scams has been the priority of the government for a while now and this technology can help achieve that feat.
Money laundering and terror funding have been serious issues for a very long time in India and cryptocurrency provide a befitting solution for such grave problems. Other than that, there is a large number of Indians living overseas who have to send voluminous remittance to their relatives in India collectively and individually. These Indians pay a large sum of money on transaction fees and again, cryptocurrency becomes a savior for them by removing all the intermediaries from the transaction.
If we somehow assume that the Indian government will greenlight the use of cryptocurrency in its markets, we cannot be foolish to think that it would be done without a proper legal framework. That’s where the actual legwork lies and if such a groundbreaking step is taken, then we’ll have to be ready for some uncustomary practices as well.
Those who were part of the implementation of GST cannot disagree with this assumption. In India, millions of people live with diverse cultures, languages, and opinions. The approach towards financial instruments also change to some degree, but today, the youth is embracing a uniform prudential disposition. Those who have understood the working of blockchain know it would plenty of benefits to us, but it cannot be implemented without meticulous planning in a country like India.
If we take various recent incidents into account, then we can say the government would welcome such a move. However, it would be interesting to see if a modicum of inching towards crypto-based solutions can be seen this year. Our current finance minister Nirmala Sitharaman has already indicated this year’s budget would be full of surprises.
Due to the outbreak of Covid-19 early last year, many countries including India had to sanction economic relief packages worth millions of dollars for cushioning the impact of the pandemic. Many small and medium-sized businesses along with the individuals were given a moratorium on their loans. However, the year 2021 has already brought a new flux of happiness with it.
Not only we have got the vaccine but markets have also started showing positive trends. The BSE Sensex recently hit 50,000 marks for the first time in history and this is very positive news for all the investors in India. Though these incidents cannot be directly associated with cryptocurrency, they certainly indicate an uptrend in the economy. Being a crypto enthusiast, we also that 2021 brings India closer to blockchain and more people in this country get familiar with this pioneering technology.
