Why is the Indian Government so much against cryptocurrency?

The unprecedented prominence that cryptocurrency received in the last decade is a topic worth mentioning in the history books. It has simplified a plethora of processes for companies, businesses, individuals, private investors, traders among other active participants.

With www.bitql.app as great as cryptocurrency’s, you can be absolutely sure that the digital financial space has witnessed revolutionary changes & modifications in the last decade.

But the question that vexes most of the governments across the world is that “Is it really that good or something much more nefarious is being perpetrated under the disguise of technological advancement?”

Well, it is a legitimate question which has both versions of answers, “Good & BAD”. Cryptocurrency is a major source of cybercriminals to derive their unethical income from.

The prevalent money laundering, child molestation, ransomware attacks, hacking, etc. are all being successfully executed through the decentralization ecosystem that cryptocurrency provides to anonymous users.

The Indian government is well-aware of all the nefarious activities which are why the government officials never really gave a green flag to the emergence of cryptocurrency in the country.

Furthermore, all these speculations were vindicated in the country’s recent Union Budget 2022 that made some serious announcements in regards to the influence of cryptocurrency in the country.

Take a look at the latest trends in the country as we continue to unravel the state of crypto in the country.

Warning from RBI

The Indian government was in an active discussion with the central bank of the country and a potential ban on cryptocurrency was inevitable.

This move also allowed the central bank of India (RBI i.e., Reserve Bank of India) to propose the country’s own digital currency which is being dubbed as “Digital Rupee”. It will also enable them to maintain their control over the widely circulated digital money.

Public protections laws are also being enforced to shield the interests of the general public. RBI has always been vocal about warning the cons of the crypto industry on the Indian subcontinent.

The financial stability & macroeconomic impact of cryptocurrency does not look so good in the country, RBI stated.

The dark side that no one talks about

The prime minister of the country “Narendra Modi” had already warned the country to steer clear of the cryptocurrency in late 2021. He went on to even declare that the prevalence of such digital assets is bound to be detrimental for the youths of the country.

The governance system has already made it clear to the population that the prominence of such highly volatile currencies in the country only paves the way for extensive money laundering incidences in the country.

In addition to this, terror financing & frauds receive a significant push from such nefarious avenues. Despite the heavy crackdown on cryptocurrencies such as this, private investors are hopeful that things will get better in near future and they will regain their ability to continue crypto trading.

Unfavourable odds

Nonetheless, there are incidences of various individuals in the country who hold multiple accounts through which trading is being done. A prominent entrepreneur from the country “Pritha Sengupta”, entrepreneur (25-year old) conducts seamless trading with multiple accounts in the foreign exchange.

Impressed by the unprecedented returns as high as 500 times, Pritha’s journey is something worth replicating. The banks in the country barely provide 7% interest on the deposits in a year which is quite outrageous, considering the unfathomable returns received from cryptocurrencies.

Organic Cryptocurrency

Needless to say, the India is one of the biggest economies in the world and embraces the latest trends right off the bat. The country has already produced its own crypto exchanges that are monitored by a central authority.

People who own cryptocurrency are estimated to be nearly about 15-20 million which is quite a large number and it is constantly growing.

Another reason that can be attributed to the unprecedented increase in cryptocurrency is the pandemic-induced lockdowns that pushed the multitude of people to stay indoors for almost 2 years.

It made people curious about the prevalence of cryptocurrency in the world and the Indian population flocked to the crypto frenzy without giving it a second thought.