Cryptocurrencies are considered to be the currency of the future. The developers of cryptocurrency use the latest cutting age technology, named as blockchain technology. This blockchain technology helps the currency to move from one server to another server. Where all the developed countries have encouraged the use and trade of cryptocurrencies, the Indian government doesn’t want to step out of its comfort zone. Last Thursday Indian Finance minister Arunjetly said that Indian legislation will not open-mindedly welcome the transaction of cryptocurrencies.
When the investors were so busy with the new release of the Bitcoin, the Indian government was busy with the demonetization act. Last year government announced that all the big notes of the country will become worthless overnight and people has to exchange their old currencies with the new currency. The reason behind this bold act of the government was to eliminate the black money from the economy, but that time government saw a large amount of investment in those cryptocurrencies. Since that time the governing bodies of India banned the use and trading of cryptocurrencies.
Government’s Steps To Curb Black Money:
Last Thursday Indian Finance Minister said to the legislators of the country, “The government does not recognize cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these crypto-assets in financing illegitimate activities or as part of the payment system”.
Many black money holders of India used cryptocurrency to launder their money, as a result, most of the big notes came back to the RBI at the time of demonetization. Cryptocurrency uses the blockchain technology, which is very hard to trace. Blockchain transaction doesn’t leave any footprint behind it. This technology was being used for the unethical purpose, which forced the legislators of India to curb the use of it. Other Europian countries are quite enthusiastic about this new technology, and they have all the modern cutting age technology to trace the trading of the cryptocurrencies. India on the other hand, is still fighting to understand the blockchain technology properly.
Steps Taken By Government To Include Blockchain Technology Into Economy:
Finance minister Mr. Arun Jaitley also said that government is trying to understand the blockchain technology properly. After they equip themselves with all the proper tools and technology to regulate this blockchain technology, they will emerge this technology into the economy. Finance minister said all these during the presentation of his 5th annual budget.
He also added to his speech, that the government is quite interested in this blockchain technology. But various government agencies are afraid of the fact that these currencies are not confined to any particular server, they are constantly moving one server to the other. The government has also admitted the fact that this technology has a huge potential and it may significantly reduce the cost of printing currency and if they can convert the economy into a complete digital economy, it will help them to counter corruption. Regulators of Indian financial activities are worried because these currencies have a constantly changing price and they might be used for many illegal activities.