PM on Cryptocurrency: Government cannot completely ban Cryptocurrency, Know the reason

Cryptocurrency: With the government and the regulator coming into action on cryptocurrency, the discussion on its future has intensified.

Cryptocurrency: Due to lack of control over cryptocurrencies and lack of transparency, the government wants to take strict action on it. 

Along with this, it also intends to ban cryptocurrency related companies, exchanges and platforms, where investors are lured by claims of hefty returns.

However, businesses and organizations related to cryptocurrency are trying to instil confidence among the Indian authorities. 

They demand that crypto be recognized as an asset rather than a currency. The government is also seriously considering this matter and may soon decide to completely ban transactions in cryptocurrencies.

Indian Bumper Investment

It is believed that it can be recognized in the form of assets like gold, shares and bonds. The organizations have also suggested giving the responsibility of its control to the market regulator SEBI, which is yet to be decided. 

Statistics show that till November 1, the total investment of Indians in cryptocurrencies was more than 75 thousand crore rupees ($ 10 billion). 

Concern Increased Due To Pm's Statement

Prime Minister Narendra Modi had raised questions about the future of cryptocurrencies in the past. He said that the unregulated crypto market can become a main source of money laundering and terrorist funding. 

Also, the way small investors are being lured by populist promises, it is possible that their money may be stuck in such investments, where returns will be very risky.

Also ReadBitcoin Investment in India: An investment of 100 rupees in bitcoin could have made you the owner of 7.5 crores

Reserve Bank (RBI) Governor Shaktikanta Das has also warned about cryptocurrencies. He bluntly said that this will increase the risk on the stability of the economy. 

Crypto Investors by Country:

• India 10.07 crore

• America 2.74 crore

• Russia 1.74 crore

• Nigeria 1.30 crore

Bankers Have To Be Careful

NS Vishwanathan, former deputy governor of the Reserve Bank, has also cautioned about the risks of cryptocurrencies. 

He believes that money laundering and valuation are the biggest challenges in the way of cryptocurrency implementation. 

If the government goes ahead with approving it, bankers will have to be careful and make their position clear in advance.

The Bigger The Gain, The Bigger The Fall

The risk of new cryptocurrencies coming in the market can be gauged from the fact that the virtual currency named ARC Governance Token climbed 28 lakh percent within an hour. 

Its price increased from $ 0.34 to $ 9,991.70. However, within an hour the crypto lost 90 percent and its price came down to $ 906 per coin.

Disclaimer: (The information provided here is for informational purposes only. It is important to mention here that investing in cryptocurrencies is subject to market risks. 

Always consult an expert before investing money as an investor. Anyone from Also investing money is never advised here.)

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