India’s Probable Plan to Launch Government-Backed Cryptocurrency

India’s Probable Plan to Launch Government-Backed Cryptocurrency

According to a senior government official, a panel is studying government-backed cryptocurrencies

India’s Ministry of Finance Panel, formed in December 2017, might propose a state-backed cryptocurrency. Among the topics discussed by the panel are an amendment of the country’s Currency Act and whether a government-backed digital asset is a decentralized or centralized system.

The country’s central bank, Reserve Bank of India, also formed its multi-department panel to discuss such possibility.

India’s government is concerned that cryptocurrencies may be used for fraud and money laundering. Since July, the central bank prevented banks from continuing business relationships with crypto exchanges and traders.

Other Countries Exploring Government Issued Cryptocurrencies

Venezuela has launched its oil-backed Petro and Iran is gearing up for the launch of its own cryptocurrency.

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How Close Is India to Initiating a Full Crypto Ban?

Is the beginning of the end for crypto in India? India Again Discussing a Crypto Ban The country has been going back and forth regarding a potential crypto ban for well over a year now, but it seems we’re getting closer and closer to the reality of a crypto-less India. A government panel is now moving forward with its recommendation of a full ban on private cryptocurrencies, along with ten years in prison for all individuals who engage in crypto-based activities. It can be argued that India doesn’t quite know what it’s doing. As a country with limited means when compared with the U.S., China and most major points of Europe, India is a nation that would likely benefit greatly from cryptocurrency use. Digital currencies are largely decentralized and would give many of India’s people the opportunity to take care of themselves through currencies that are not controlled by any bank or financial institution. Users would not need to garner appropriate credit or industry recommendations. The money would be in their accounts in relatively short periods and they’d be free to use it without restraint. Nevertheless, India is allegedly not listening and once again relying on the age-old argument that crypto is responsible for illicit activity such as tax evasion and money laundering. It’s strange how so many people – even President Donald Trump – are unable to let this argument go. The panel in question has submitted a report suggesting that cryptocurrencies, as they stand, have no “underlying value.” However, it is stating that while doing away with all standard crypto is necessary, the Central Bank of India should examine the prospects of creating a national, digital rupee. Presently, the rupee is the country’s official cryptocurrency, and the panel is suggesting digitizing it to potentially lessen the chance of fraud in the future. What the panel probably doesn’t realize is that this wouldn’t protect against such problems. In addition, a nationalized cryptocurrency would hardly be crypto at all. A coin of this nature would be largely centralized or controlled by the banks that issue them. Thus, many would be prevented from getting their hands on it. They wouldn’t be able to live or survive the way they could with standard or mainstream forms of crypto like bitcoin, Litecoin and Ethereum. Interestingly, many experts agree that India would be making a huge mistake if it were to enforce a full ban of cryptocurrencies. Sathvik Vishwanath, the co-founder of Uno Coin, explained:  If the government decides to take such a drastic step, then India will stand to lose out significantly on the technology front. Many Think This Would Be a Bad Idea Nischal Shetty, CEO of Wazir X, seems to agree. He explains:  Banning cryptocurrencies is a regressive step and no country or government should ban a new technology such as this. The post How Close Is India to Initiating a Full Crypto Ban? appeared first on Live Bitcoin News.
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India: Government Committee Recommends Cryptocurrency Ban

Despite an earlier statement from India’s Minister of State for Finance that the government wasn’t planning on banning cryptocurrencies, the Inter-Ministerial Committee (IMC) is proposing otherwise. According to the IMC report on July 22, 2019, the committee recommended a blanket ban on cryptocurrency and also penalties for conducting virtual currency activities in the country.  IndiaRead MoreRead More. The post by Anthonia Isichei appeared first on BTCManager, Bitcoin, Blockchain & Cryptocurrency News\
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