bitcoin: Time for India to show some love for Bitcoins? 6 crypto ideas for the budget

Bitcoin transactions, among other functions, have existed in India since the establishment of the dominant cryptocurrency in 2009. But as its use became more widespread, it received cynicism and hostility from governing bodies like the RBI, especially in 2018. However However, the situation could not be sustained for too long.

Central Banks around the world had been issuing their own cryptocurrencies – some declared them legal tender and the rest took a wait-and-see approach. Due to global trends in favor of cryptocurrencies, an obligation to protect human rights and on the basis of proportionality, the Supreme Court overturned the 2018 ban on crypto asset trading in March, 2020.

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“When the RBI’s consistent stance is that they have not banned virtual currencies and the Indian government is unable to take a call despite several committees having put forward several proposals, including two draft bills, both of which support opposing views, it . it is not possible for us to hold that the impaired measure was proportionate, “the highest court said.

But there are other reasons why the Indian authorities eventually had to give in to the growing popularity and public demand for bitcoin and the cryptocurrency industry as well. Virtual currency enabled millions of Indians to participate in the global ecosystem of cryptocurrencies. They made transactions for Indians to any part of the world simpler, faster and more cost effective and powerful Indians to make informed choices on investing in one of the best performing assets in the world. While in 2020 many industries crumbled, the crypto industry created thousands of jobs and helped workers retain their jobs and higher skills.

There is a great deal of hype around bitcoin when the prices are bullish. However, it is important to remember that what gives bitcoin its value is its ability to enable fast and free transactions. Just as email communication made the transfer of information quick and free, technology like bitcoin has the potential to revolutionize money.

So far, this has been considered a fairly speculative tool but this is still a step it has had to take to find its own value so that it can be used for a “value transfer” mechanism in future generations. Furthermore, we need to remember that most developed countries have fixed currencies and that the general public lives on credit. But in India, the native fiat currency is depreciating faster and there is a strong instinct to save among our population. This, combined with the rise of digitalization and the technical vitality of the younger generation, makes bitcoin technology very useful to us.

So the cryptocurrency industry is here to stay and it is essential to facilitate its development, especially in the economic downturn that followed the pandemic. The RBI, along with SEBI and the Indian government, should consider exercising its regulatory powers and formulating a new calibrated framework or regulation that recognizes the reality of these technological advances. We must take this opportunity to keep India on the front foot with other leading global economies and assure investors and stakeholders of the continuity of the business.

Here are a few things the Union Budget should consider when giving more regulatory clarity to cryptocurrencies in India:

1. Regulating cash flow.

2. Capital raising options.

3. Provisions and amendments in IT and GST laws for clarity on tax eligibility. 4. Recognize certain acts as offenses liable to penalties so that users and platforms can better understand their rights and duties.

5. Recognize cryptocurrencies as tradable commodities.

6. Using blockchain technology for government records.

Although it may not be possible to introduce all these rules at once, some sort of road map would be required. This would help the country on many levels, whether in investment, employment or innovation opportunities. If such legislation is announced, India will join the ranks of the countries to bring a robust regulatory framework to crypto assets and will be able to compete with developed countries in this industry.