The Rise of Cryptocurrency in India Essay in English for Students
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The Rise of Cryptocurrency in India
First, let us know,
What is a Cryptocurrency?
A Cryptocurrency is a digital or virtual form of currency that uses blockchain technology & cryptography technology which makes it next to impossible to counterfeit it. Since Cryptocurrencies use blockchain technology, these are decentralised currencies.
Types of Cryptocurrencies?
There are thousands of Cryptocurrencies in the market. Some major Cryptocurrencies includes the following:
Bitcoin is the first & widely accepted Cryptocurrency in the world. However, due to its demand & popularity, Bitcoins have become very expensive. In the year 2021, the cost of one Bitcoin was 68,000 USD.
Ethereum is another popular & fast-growing Cryptocurrency. Ethereum is the second most popular Cryptocurrency after Bitcoin. It was launched in 2015 by Buterin & Joe Lubin.
Some othe Cryptocurrencies are:
- Bitcoin Cash
- Binance Coin
Rise of Cryptocurrencies in India
India is one of the world's fastest growing crypto markets, increasing by 641% between July 2020 and June 2021, says, the report by cryptocurrency research firm Chainalysis.
After the digital revolution, the boom of Cryptocurrencies have increased immensely. In India, the crypto sector has seen 500% growth since the beginning of the pandemic - Covid-19.
However, the speech given by the finance minister of India in the budget speech 2018-19, that the government do not consider Cryptocurrencies legit, changed the whole outlook.
The government of India proposed some bills to completely ban Cryptocurrencies in india.
But, the government's stance on Cryptocurrencies has changed significantly over the past few years.
Recently, the government has passed a new bill (Regulation of Official Digital Currency - 2021) for the regulation of Cryptocurrencies in India.
While the older bill sought to completely ban Cryptocurrencies, the newer one is trying to create a sovereign digital currency & at the same time, wants to ban all private digital currencies.
Though the Crypto market is growing astoundingly in the whole world, the government of India law enforcement and taxation departments are voicing their opinions in favour of complete ban of Cryptocurrencies in the country.
In 2018, the RBI issued a circular prohibiting all banks from dealing in Cryptocurrencies or offering Cryptocurrency transactional services to customers. However, The Supreme Court of India declared the circular unconstitutional in May 2020.
Recently, The Prime minister of India has called a meeting on Cryptocurrency with senior officials. The clear indications are that the government wants to regulate Cryptocurrencies instead of banning the currencies.
The Future of Cryptocurrency in India
Over the past few years, the interest of people in Cryptocurrencies in India has skyrocketed. It's one of the hot topics not only in India but in the whole world.
2022 is a breakthrough. There is a lot of attention being given to the Cryptocurrency market in India. However, the crypto Industry is in its infancy & growing stage.
Many countries are trying to regulate Cryptocurrencies. India also must regulate it rather than putting a complete ban on it.
Many big companies in the world are steadily showing their interest in Cryptocurrencies - and some companies themselves are investing in Cryptocurrency assets. For example, AMC, recently, announced that it will accept Bitcoin payments. Tesla has already invested millions of dollars in this market.
The tremendous inflow of attention from uni-corn companies shows its future potential growth. We can predict that the future of Cryptocurrencies is not grim but bright.
Now, the need of an hour is try to find new ways by which it can be made safer for investors and less appealing to cybercriminals.
In India, Regulation is needed to prevent serious criminal threats & to make sure that Cryptocurrencies are not misused for any illegal deals. If India bans Cryptocurrencies, we may miss out the global race altogether.
Recently, The RBI has announced to launch its own digital currency. India is trying to centralise the decentralised ecosystem like China.
India should make regulations for digital currencies. The sector must be regulated .
India cannot be a late adopter of the technology like it was in the past. Blockchain technology is a new opportunity for us. We have the calibre & potential to channel our human capital and resources into it. If we adopt this technology soon, we can emerge as one of the winners of the technology. All we have to do is to regulate this digital asset as soon as possible like other countries.
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