The Supreme Court has hoisted the RBI ban on transactions of cryptocurrencies on March 4. The RBI has dictated this ban since April 2018, which stops a broad range of cryptocurrency-based exercises in India. With this response, investors in the cryptocurrencies as well as exchanges that permit trading in them.
So, how would this going to work in favor of both? Moneycontrol spoke to the three cryptocurrency experts in order to get their views.
Mukul Shrivastava, Partner, Forensic and Integrity Services, EY
He said that it is a bag of risk and rewards. The investors track the technological advances to garner the advantages. Moreover, it is essential to be educated and aware as a trader, consumer, and economy, crypto-exchange in order to create a broader ecosystem where innovation blossoms and threats are alleviated. The cryptocurrencies have acquired the influence, but it should be observed as a double-edged sword in volatile’s and risk environment. For example, there is no central authority to control and attain the ownership or cater the safeguard security.
It is really easy to use and make transactions on a real-time basis without any cross border restrictions. So, the anonymity is being offered, but you would see no Kyc there, which concerns about his point of view. The significant issues are that the crypto accounts can be used for forbidden purposes that are absurd to track. So, this situation is really to worry about, and to create a crypto wallet needs internet-enabled devices. The resurgence of the cryptocurrencies will totally depend on the growth of the ecosystem while alleviating risks.
Nischal Shetty, Founder & CEO, WazirX
He said that we all must initiate to have a word with the policymakers and then work towards generating a crypto regulatory framework in India. Recently, most of the countries are setting up control in the crypto for now. Regulating crypto would be a massive win for India as this can drive more Blockchain focused startups, high amount of jobs as well as much tax revenue for the government.
Crypto is generally a new age asset class, and we should not contend it against fiat currencies. Moreover, currency is one of the possible use cases of crypto. FATF, the financial action task force guidelines, has clearly stated that crypto is not something to afraid of in the global economy and can be regulated properly. FATF has also deferred a crypto standard regulation report to G20 countries, and India is known as the G20 member. Both the fiat and crypto co-exists and crypto can aid the banks to clarify the existing problems for millions of unbanked people.
Indians even used the peer to peer (P to P) platform to process the transactions, but the banking channel can feel more successful as that will be much more convenient for users just because of the note ban. Therefore, it will be easy for Indians to trade in the crypto sector.
Dr. Garrick Hileman, Head of Research at Blockchain.com
He said that India would be among the leading countries for cryptocurrency and the digital asset enactment as a natural progression to be a cashless Indian economy. The decision of the Supreme Court for legalizing Bitcoin as well as stepping into cryptocurrency trading would become an ideal step for both the Indian consumers as well as crypto businesses.
So, this won’t just only expand the daily use of the cryptocurrencies in India but will captivate fresh talent as well as an innovation that would support the Blockchain of the country and the distributor ledger. Crypto is considered as the digital currency, which runs on the Blockchain technology.
Therefore, the countries that enfold public cryptocurrencies would intrigue the ability and create domestic technology benefits, which will help in succeeding in the Blockchain technology race.
India has now refined a strong position in prospering next-generation Blockchain, and this immersion of talent and embellished regulatory clarity will support the Indian firms to build regional as well as global leadership positions.
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