Bringing regulation is better than banning
There have been discussions going on about cryptocurrencies in India for the past few weeks. I see many articles where people are sharing their thoughts on this topic. Though one thing is clear that they lack enough knowledge on this topic, I'm sure they are taking all the efforts to come up with a proper solution for this.
Banning cryptocurrencies cannot be a solution to the situation. A few years the back government tried doing it and it was not good and I honestly think that if the government decides to do something like that, it would miss a very big opportunity in the global markets. Other countries would develop to a great extent and India will stay behind for a longer period of time.
I'm sure that there would be lots of people still continuing to invest and trade cryptocurrencies even though not through bank or money transfers but through peer-to-peer transfers and barter systems where nobody would know that the transaction happened. A transaction like this cannot be brought on the radar of the government and it is not easy to predict such transactions even if it happens as a wire transfer.
There are also transactions that would happen through cash where people would move the cryptocurrencies from one wallet to another wallet by just exchanging cash. This cannot be prevented easily by the government. So, I guess banning cryptocurrenices will not be a good solution for the future but instead government can think about regulating it by providing clear rules to people who trade. The government can also include a proper taxation category for cryptocurrency trading. This will be more comfortable than banning.
Another disadvantage I see here in banning is that we might not get advanced in terms of technology. Many countries have already started using digital currencies and blockchains for some of the important government use cases. If we don't explore these things, India might get outdated easily on these aspects.
Not just for India but I personally think that it is too late and un-imaginary to ban cryptocurrencies. It is not centralized and it cannot be removed completely. As long as the Internet exists, cryptocurrencies and trading will still continue to be there. Even if the government targets the cryptocurrency exchanges and brings some strict rules, there will be people moving funds from one wallet to another wallet and do peer to peer transactions that cannot be controlled. So, I think it would be better to explore this in detail, understand, and take some wise decisions.
Posted Using LeoFinance Beta
