• India’s Minister of Finance Nirmala Sitharaman says cryptocurrencies will take up most of the chat time during this year’s upcoming G20 presidency event in India.
• Shaktikanta Das – the governor of the Reserve Bank of India (RBI) – has said he doesn’t think crypto assets have any place in India and would prefer to do away with all of them.
• In 2018, traditional financial institutions were not allowed to do any work or business with crypto firms, though it was not quite a ban.
What is Crypto?
Cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.
India’s Stance on Crypto
India’s Minister of Finance Nirmala Sitharaman recently visited Washington and explained that given so many collapses and shocks in cryptocurrencies, they seek to develop a common framework for all countries to deal with this matter. Meanwhile Shaktikanta Das – the governor of the Reserve Bank of India (RBI) – has said he doesn’t think crypto assets have any place in India and would prefer to do away with all of them no matter how big or important they might seem. In 2018, traditional financial institutions were not allowed to do any work or business with crypto firms, though it was not quite a ban either.
The Future Of Crypto In India
Despite these observations from authorities within India there seems to be an optimistic future for cryptocurrency in the country seeing as how Nirmala Sitharaman believes crypto will dominate during this year’s upcoming G20 summit as one of their main topics for discussion. Additionally free trade agreements are being signed much faster than before which could facilitate growth when it comes to digital currency use in the country.
With such an unpredictable yet growing market for cryptocurrency around the world there needs to be some level regulation put into place by governments so that investors don’t end up losing their money like what happened when FTX collapsed last year due to mismanagement by its CEO Sam Bankman-Fried. Governments want investors‘ funds safe so they can trust putting money into digital currencies without fear; thus many are beginning discussions about developing frameworks specific for cryptocurrencies which can ensure proper management and protection against fraudsters taking advantage if people’s investments.
Overall it appears that while cryptocurrency may still face certain hurdles in order for it become completely accepted within Indian society; authorities within the nation seem open minded towards embracing digital currency in whatever form it may take over time – whether through legislation or just more general acceptance amongst citizens – provided proper regulations are put into effect first and foremost. It looks like with each passing day more and more countries are recognizing both blockchain technology’s potential value and also its potential risks if left unchecked – hopefully leading us closer towards global adoption sooner rather than later!