{"id":114300,"date":"2021-06-23T12:36:39","date_gmt":"2021-06-23T07:06:39","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=114300"},"modified":"2021-06-23T12:36:39","modified_gmt":"2021-06-23T07:06:39","slug":"theres-no-easy-victory-in-the-countrys-crypto-cold-war","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/theres-no-easy-victory-in-the-countrys-crypto-cold-war\/","title":{"rendered":"There\u2019s no easy victory in the country\u2019s crypto cold war"},"content":{"rendered":"\n<h5><b><span data-contrast=\"none\">India\u2019s Pessimistic attitude towards Crypto currencies<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/h5>\n<ul>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"103\" aria-setsize=\"-1\" data-aria-posinset=\"244\" data-aria-level=\"1\"><span data-contrast=\"none\">The Reserve Bank of India (RBI) is pessimistic about the use of <a href=\"https:\/\/forumias.com\/blog\/black-money-reborn-as-crypto-currency\/\" target=\"_blank\" rel=\"noopener\">Cryptocurrencies in India<\/a>. Consistently, the RBI had highlighted the disadvantages of using cryptocurrencies.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"103\" aria-setsize=\"-1\" data-aria-posinset=\"245\" data-aria-level=\"1\"><span data-contrast=\"none\">Further, in 2019, a high-level intermediate committee constituted by RBI recommended a blanket ban on private cryptocurrencies in India.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"103\" aria-setsize=\"-1\" data-aria-posinset=\"246\" data-aria-level=\"1\"><span data-contrast=\"none\">The pessimistic attitude towards digital currency has led banks, to distance themselves from the crypto community. For example,<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"o\" data-font=\"&quot;Courier New&quot;\" data-listid=\"103\" aria-setsize=\"-1\" data-aria-posinset=\"55\" data-aria-level=\"2\"><span data-contrast=\"none\">In May, HDFC Bank warned its customers against virtual currency transactions.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"o\" data-font=\"&quot;Courier New&quot;\" data-listid=\"103\" aria-setsize=\"-1\" data-aria-posinset=\"56\" data-aria-level=\"2\"><span data-contrast=\"none\">Similarly, an RBI circular instructed all businesses to cease any involvement with cryptocurrencies.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"o\" data-font=\"&quot;Courier New&quot;\" data-listid=\"103\" aria-setsize=\"-1\" data-aria-posinset=\"57\" data-aria-level=\"2\"><span data-contrast=\"none\">Moreover, State Bank of India has also taken a tough stance on cryptos.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<h5><b><span data-contrast=\"none\">Reasons for India\u2019s Pessimistic attitude<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h5>\n<ul>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"104\" aria-setsize=\"-1\" data-aria-posinset=\"247\" data-aria-level=\"1\"><span data-contrast=\"none\">Their prices are highly\u00a0volatile,\u00a0and they pose the risk of a financial bubble.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"104\" aria-setsize=\"-1\" data-aria-posinset=\"248\" data-aria-level=\"1\"><span data-contrast=\"none\">Anonymity in the usage that cryptos. it can serve as a\u00a0safe transaction tool\u00a0for cyber criminals.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"104\" aria-setsize=\"-1\" data-aria-posinset=\"249\" data-aria-level=\"1\"><span data-contrast=\"none\">Potential losses of revenue for the government since it is almost impossible to track crypto payments for any tax\u00a0liabilities.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"none\">Global Scenario<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"105\" aria-setsize=\"-1\" data-aria-posinset=\"250\" data-aria-level=\"1\"><span data-contrast=\"none\">Globally, cryptocurrency acceptance has been growing. For instance, El Salvador has become the first country in the world to grant Bitcoin legal-tender status.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"105\" aria-setsize=\"-1\" data-aria-posinset=\"251\" data-aria-level=\"1\"><span data-contrast=\"none\">Also, countries like South Korea are implementing legislative frameworks to regulate cryptocurrencies and exchanges.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"105\" aria-setsize=\"-1\" data-aria-posinset=\"252\" data-aria-level=\"1\"><span data-contrast=\"none\">However, equally there are negative sentiments towards adopting Crypto currencies as a legal Tender. For example, former US President Donald Trump\u00a0didn\u2019t\u00a0back Crypto currencies.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"105\" aria-setsize=\"-1\" data-aria-posinset=\"253\" data-aria-level=\"1\"><span data-contrast=\"none\">In India too, some pressure being mounted to acknowledge crypto currencies. For instance, RBI\u2019s 2018 anti-crypto circular was struck down by the Supreme Court. Supreme court\u00a0stated\u00a0that RBI had failed to\u00a0provide\u00a0sufficient proof and detail over losses arising from crypto transactions.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<h5><b><span data-contrast=\"none\">Consequences of India\u2019s disposition towards Crypto currencies: Aggrieved investors<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h5>\n<ul>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"106\" aria-setsize=\"-1\" data-aria-posinset=\"254\" data-aria-level=\"1\"><span data-contrast=\"none\">A research report by Bloomberg Intelligence has said that crypto\u2019s technical outlook is strong and its price could surge to $400,000 in 2021.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"106\" aria-setsize=\"-1\" data-aria-posinset=\"255\" data-aria-level=\"1\"><span data-contrast=\"none\">Investors in India fear of\u00a0missing\u00a0the high profits that can be earned through crypto trading.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"106\" aria-setsize=\"-1\" data-aria-posinset=\"256\" data-aria-level=\"1\"><span data-contrast=\"none\">Many customers and crypto investors are taking to social media to express their discontent.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"none\">India\u2019s Position<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"107\" aria-setsize=\"-1\" data-aria-posinset=\"257\" data-aria-level=\"1\"><span data-contrast=\"none\">India\u2019s is trying to reduce the domestic <a href=\"https:\/\/forumias.com\/blog\/what-is-dogecoin-cryptocurrency\/\">cryptocurrency<\/a> sphere to a\u00a0state backed\u00a0CBDC\u00a0(Central Bank Digital Currency).<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"107\" aria-setsize=\"-1\" data-aria-posinset=\"258\" data-aria-level=\"1\"><span data-contrast=\"none\">India is considering the imposition of an effective ban on \u2018private\u2019 digital assets and currencies by enacting the\u00a0<\/span><b><span data-contrast=\"none\">Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"107\" aria-setsize=\"-1\" data-aria-posinset=\"259\" data-aria-level=\"1\"><span data-contrast=\"none\">As an alternative to Crypto currencies, India is willing to introduce a\u00a0<\/span><b><span data-contrast=\"none\">central bank digital currency<\/span><\/b><span data-contrast=\"none\">\u00a0(CBDC).<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<h5><b><span data-contrast=\"none\">Way forward<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h5>\n<ul>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"108\" aria-setsize=\"-1\" data-aria-posinset=\"260\" data-aria-level=\"1\"><span data-contrast=\"none\">The global experience suggests that a blanket ban would be\u00a0ineffective,\u00a0and India should consider\u00a0regulating\u00a0them to mitigate systemic risks.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"108\" aria-setsize=\"-1\" data-aria-posinset=\"261\" data-aria-level=\"1\"><span data-contrast=\"none\">Further, public consultation along with discussion, debate should be held among all stakeholders.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"none\">If India\u2019s cryptocurrency bill is enacted by Parliament in its current form, it would serve RBI\u2019s objective. However, it won\u2019t be a long-lasting and a pragmatic solution.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s Pessimistic attitude towards Crypto currencies\u00a0 The Reserve Bank of India (RBI) is pessimistic about the use of Cryptocurrencies in India. Consistently, the RBI had highlighted the disadvantages of using cryptocurrencies.\u00a0 Further, in 2019, a high-level intermediate committee constituted by RBI recommended a blanket ban on private cryptocurrencies in India.\u00a0\u00a0 The pessimistic attitude towards digital&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/theres-no-easy-victory-in-the-countrys-crypto-cold-war\/\">Continue reading <span class=\"screen-reader-text\">There\u2019s no easy victory in the country\u2019s crypto cold war<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,8043,9],"tags":[8157,8158],"class_list":["post-114300","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-current-affairs-cat","category-public","tag-crypto-currency","tag-cryptocurrencies-in-india","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700782307,"cached_date":1704933190},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/114300","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=114300"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/114300\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=114300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=114300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=114300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}