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Mumbai, July 31, 2020
Over the past few years, we have seen differing views and concerns about the use of cryptocurrency in India, with at one point, it being banned for around two years. But with more rumors currently arising in Indian newspapers, will it be banned again? In this article, we'll take a look into cryptocurrency usage in India and what the government's thoughts are. Sounds interesting? Then keep on reading.
What is cryptocurrency?
Cryptocurrency refers to any sort of digital currency that cannot be held physically by hand. It can be traded online and stored in your digital wallet as an investment. Today there are more than 2000 different types of cryptocurrency, but the most popular which you may have heard about is bitcoin. Bitcoin itself can be purchased on various exchange sites, or "mined" over the nternet. While it is well-known, there are many countries that have placed a ban on it, stating that it should be considered an actual form of currency.
When was it banned?
In April 2018, a ban was placed on cryptocurrency in India, which was interesting considering its popularity. It was the Reserve Bank of India that imposed the ban, highlighting that it was a necessary step to support banks. They also argued that because it was not a physical form of currency that could be stamped, it was not valid. It's no secret that they haven't been a fan of the new technology, but it still came as a shock to many.
After two years, the ban was lifted by the Supreme Court, stating that they believe that they should be welcoming tech and not pushing it aside. Investors around India were ecstatic that, once again, they could be part of this digital movement.
Will it be banned again?
This current year, rumors have begun to resurface about the rebanning of cryptocurrency in India. So far, only a note has seemed to be passed, but it has left many members of the cryptocurrency community once again concerned and confused about what to do next. In fact, many individuals seem to think that it wouldn't be wise to get rid of such a booming technological industry, especially when it isn't doing any genuine harm. On top of this, it hasn't been the first time that such rumors have been introduced, so will it just be another phase that goes away?
Regardless of the news, however, there hasn't seemed to be a decline on any of the exchange sites, leading members to believe that their investments will be safe. You can check on the BTC price in INR online easily with a bitcoin calculator.
While the outcome of cryptocurrency in India is still unclear, it's safe to say that for now, it is still legal, and you can continue investing. When taking a look at other countries that are welcoming the digital currency, it's going to be interesting to see if the Indian government can come up with a feasible plan and reason for reintroducing the ban.
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