Today Cryptocurrency news in India -- Why RBI wants to ban cryptocurrency in India?

  The RBI (Reserve Bank of India)  has been at loggerheads with the central government over cryptocurrency for a long time. A few days ago, a metting was held at the senior officer level of the Reserve Bank of India. According to the RBI, no partial regulation or regulation will work in India. And in the opinion of senior RBI officials, cryptocurrency should ve completely banned in India.

                Picture Courtesy: Google

On the other hand the Central government of India's view is completely opposite. The central government of India wants to go against this policy.

According to RBI, cryptocurrencies should be banned altogether, not partially. But the reason behind the RBI's thinking is that the RBI is an autonomous body of the central government of India. RBI controls money in India and soon RBI is going to bring digital currency to market. As a result, when CDBC (Central Bank Digital Currency) enters the market, the value of money will remain the same, no devaluation will occur. Let's understand the matter little clearer. Suppose you have a Rs 50,000 into digital currency, then its value will remain the same, that is, the value of fifty thousand rupees note. Now if you want to convert that fifty thousand rupees into digital currency, then its value will remain the same, that is, the value of fifty thousand rupees note and fifty thousand digital currency will be the same. But any cryptocurrency fluctuates. Unlike digital currency, it is never stable.

Now there are different platforms for money payment. Such as Google Pay, Phone Pay, Bhim Pay, Bharat Pay. There are also some other apps. But there is a paper currency behind the transactions that are done through these apps. When it comes to digital currency, it will take its place instead of paper currency.

Revathy Iyer (the former Deputy Comptroller and Auditor General) says that cryptocurrency will unstable the country's financial stability. And it will have an impact on the macroeconomy as well. However, another board member Sachin Chaturvedi (Director General of Research and Information System for Developing Countries) is analysing how cryptocurrencies are causing problems around the world. Because if all the money from the bank goes to the crypto, then the central government will not have any financial control, which the RBI never wants. Scond, Traceability of Transaction -- It is never possible to track cryptocurrencies, whereas in the case of digital transactions it is possible to easily track how much money is being transacted between the accounts. Third, The Valuation of Crypto Currency -- let's say a month ago the value of a crypto currency was sixty thousand but now it has been reduced to 55,000. From this, crypto is extremely unstable. Crypto is never as stable as digital currency or notes. There are also legal issues, extreme price violating issues and difficulty in identifying the parties in the crypto transaction chain. KYC is not required for cryptocurrency transactions, so it is never possible to know which accounts are being traded and how much money is being transacted.

What is the future of cryptocurrency in India?

In 2017, the RBI announced a ban on crypto entering India. But in 2020, the Supreme Court ruled that the RBI's restrictions on crypto would no longer apply. And it is further said that anyone in India can trade through crypto and keep property.

Now the Central Government of India is introducing a new bill for crypto. If the bill does not pass this winter session, it is expected to pass during next year's first budget session. RBI Governor Shaktikanta Das said the decision on the bill would be taken in consultation with the central government. Crypto is currently valid in India till March 2020. But whatever the future of crypto in India, it is quite well understood that crypto can never be used as a legal tender, only as an assets class.