Without any doubt, the global economy is about to change forever. We can see that the concept of cryptocurrencies has become much bigger in the last couple of years. There are a couple of reasons for this happening. We can see that there are many people out there who believe that the value volatility is the main reason why a wide adoption was performed recently. However, it is not the only reason.
Instead, there are a couple of features that make digital currencies much more efficient than any other methods that are present in the world of finances. For instance, the transactions it can perform will be much faster than any other traditional method. Furthermore, people can get a hold of them in a somewhat alternative way than usual money. If you want to check out one of the software that can help you with this, check bitcoineranew.com/se.
Even though the majority of countries are interested in legalizing cryptos completely. Some have a different opinion about what they want to do with it. For instance, we can see that India has a different idea. In the last couple of days, we can see that the Indian government is thinking about whether they should ban it. Let’s see what we know about this.
The Indian Market
Recent news about the potential cryptocurrency ban in India has taken the whole world by surprise. The reason is that we are talking about one of the biggest crypto markets out there. Not only that, it needs to be said that the market has a potential that is not uncovered completely since the infrastructure is not on the level as it is in some countries out there.
If you take a look at a couple of reports out there, you will see that the central and southern Asia market is the fourth biggest in the world. For those who are not sure about what this means, it means that it has roughly $570 billion in value. Or when you want to translate it into a percentage, you would see that it represents 14% of the global market. India makes almost 50% of this regional market.
Not only that, but we’ve also mentioned that it has significant potential. Plus, think about the mindset the younger generation in this country has, and you will be presented with a great idea about where things would go in the future. For all of these reasons, traders from other countries were surprised to see why something like this would happen in a country that has so much potential.
Government and Cryptos
It’s not a surprise that the Indian government had a somewhat strange relationship with the concept of cryptocurrencies. We can see that 2018 was a particularly strange year for cryptos. That year, the government has banned crypto transactions. In 2020, the country’s supreme court has imposed many prescriptions on the traders. However, the recent occurrences are probably the strangest.
When it comes to the official statements the government makes about these, they mainly speak about the potential disruption between digital currencies and India’s financial stability. The reason is that you can convert Rupee only partially. So, the potential behind digital currencies could cause some much bigger problems for the national currency down the road.
Besides that, we can see that this concept provides the traders and owners with anonymity. You will certainly agree that all the government institutions are interested in having at least some information about their citizens. At the same time, preventing criminal activities is not possible without having this sort of information. So, these two factors have set the tone we can see occurring these days.
We can see that the government is interested in banning private cryptocurrencies and creating some sort of official digital currency. When you think about it, you can see that this is an example set by China in 2021. All of us are heard about China banning Bitcoin and other key players in the market. Not only that, but the government invested money into creating their digital cryptocurrency.
You can see that the Indian government will make the difference between private and public cryptos. Naturally, private ones will be banned completely, and public ones would be legal. What the government wants to achieve is pretty obvious. We can see that a lot of the countries are interested in making their own, national digital currencies. The finest example is China’s Yuan Pay.
Private vs. Public
The difference between private and public digital currencies can be pretty uncertain sometimes. When you take a look at the law passed by the Indian parliament, you will see that the concept of private cryptos is not yet clarified. However, we can presume that we are talking about Ethereum, Bitcoin, and all other big players on the market since they can be found on people’s private e-wallets.
So, public ones will be ones created by the government. For that reason, traders will not have a chance of staying anonymous during making transactions or when they just own them. While it is not clarified, as we’ve already mentioned, we can see some obvious traits that will truly make the difference between these two factors. Therefore, it’s obvious that trading only with the national digital currency will be legal.
As you can see, China’s example has set a precedent that will be followed by a lot of different countries out there. The first one that has started thinking this way was India. Since there are a lot of countries who are interested in creating their national currencies, we can expect something like this will become much more usual in the future.
Still, we don’t believe that this approach is as clear as it needs to be. However, we can see that many people think that this means that India will ban this sort of trading forever. You can be sure that this is not going to happen. However, the traders will have limited options. Maybe the interest in trading will decline in the future, who knows.