WHY INDIA SHOULD EMBRACE CRYPTO?

The row over crypto does not seem ending. In fact, the Indian government’s dilemma failed to draw any rational conclusion. Meanwhile, the looming worries of earning a big dent not only periled the future investment but the economy at large. Government’s plan to turn the economy 5 trillion also seems a far cry. The soaring prices of crypto started taking dips over and over again. The worst part of the story is that the worried Indian investors find it difficult to score their loss as the payment wallet has temporarily withdrawal the payment facility. In addition to that customer care service seems settling their vendetta to make the entire scenario even worst. The worried investors are losing their money at a very fast pace. If the situation prolongs the investors might lose their entire money. In a recent development government has stated that the bill to ban all the crypto currencies will be brought after the approval of cabinet committee. The much awaited decision was yet to come by 11th Dec. To be remembered that price determination of crypto follows the law of demand and supply. Since the mining of crypto has stopped very long but infatuation of many industrialist remained growing which further fanned the price. Barring few more rational reasons to contemplate it, economies are concerned over security and regulation concern only. However, carbon emission, parallel economy and other serious concerns took back seat. Western economies turned a deaf ear to take any proper measure to regulate it. Giving a free hand caused many entrepreneurs to come up with different crypto and paved the way of money making and tax evasion. The American economy must introspect their previous judgment of putting an indirect action to nip the bud of LIBRA of Face book. However, the indecisive attitude parties and turning down some serious environmental concern surfaced off late. Former U.S. president's decision to keep a bay from Paris Convention gathered much attention and criticized badly. Considering the current Geo-Political scenario when the dominance issue started surfacing again Russia has made a strong decision to remove dollar from its foreign reserve definitely a matter of concern for many economies. No wonder if other economies also advocate this decision and join hands with Russia. This decision has various implications from business and economic point of view. In the similar fashion India has to make it more clearly about crypto. The government can however make certain amendment and regulating policy to control the crypto but putting a ban is definitely not advisable. The present banking system is strongly looking for a change in money circulation especially when many regulatory policies have failed to control inflation over the years. Some of the major concerns of crypto cannot be side lined yet there is always scope for improvement. On the other hand, some major economies like U.S. cannot only ban such currencies completely but also restrict the transactions in other countries as well. However, the present situation does not seem that they will back this idea. If India restricts crypto, it will be definitely a hara-kiri decision and will put the country far behind from its much ambitious dream of making Indian economy a 5 trillion dollar economy.

 

 

Declaration: - This article is still in developmental phase and subject to improvisation over time. Besides, all the presented facts and analysis writer’s own perspective and personal discretion may vary.

Writer: - Devsheel Gaurav

(Management Faculty and Analyst)