Cryptocurrency
From the past one year cryptocurrencies have started showing a lot of adverse effect on the economy of China, America, Europe, Russia and other countries not only in India but in the world. Although cryptocurrency was developed in 2009 by a pseudonym named Satoshi Nakamoto as Blockchain technology based computer program as invisible virtual currency which was beyond all rules, laws, act, control of banks but it is very complex computer. Due to the processing of technology and due to the expansion of computer revolution all over the world, it was not under the control of any country.
There was no rule, law, policy and strategy for such invisible virtual currency in any country other than its official currency, due to which cryptocurrency has spread and invisible virtual currencies have reached 400 to 1500 in the last four years. Cryptocurrency exchanges and dealers have become so overconfident that it is impossible to stop blockchain technology in the world, so no country can successfully ban cryptocurrencies. Initially all the cryptocurrency exchanges were located in China but the Chinese government took very strict measures on the cryptocurrency exchanges and they stopped trading.
China banned all cryptocurrency transactions. After that these cryptocurrency exchanges moved to India, US and tax haven countries where there were no clear regulation of cryptocurrencies. Each country has its own different circumstances, problems, constraints, dependencies, socio-economy constitution structures and technology limitations, so what other countries regulate towards cryptocurrencies has no pressure and effect on our economy. 135 crore Indians to our country, Emerging economy, Make in India, Made in India, Make for World, Fastest growing start up ecosystem in the world, +5 trillion economy by 2025, Zero BPL and Employment for all are to be achieved. Therefore we need to ensure that economic crimes like money laundering through cryptocurrencies do not drive our money abroad and do not block the growth of our national income and GDP. It is also to ensure that there is no conspiracy against our country in the form of cryptocurrencies.
Cryptocurrency statistics do not have some reliable benchmarks and no government has any data. Fear, uncertainty and doubt are fundamental to investing in cryptocurrencies. Still the number of investors is in crores and the investment is telling about +3 trillion. According to an advertisement by cryptocurrency exchanges WazirX, Coinswitch, CoinDCX, Fleetpay, Zebpay, IAMAL, BACC among others, 2 crore investors in India have invested Rs 6 lakh crore in India. In the year 2018, Indian banks had banned the transaction of cryptocurrencies but in 2020 the Supreme Court lifted the ban. From the past one year, all the newspapers started publishing lucrative and misleading advertisements and news of cryptocurrencies, in which investors were shown attractiveness of 30 percent to 100 percent greed, convenient, jack, large base of investors etc. According to a news, there are 10.5 crore investors in India, out of which 20 percent are in the age group of 18-20 years. The price of bitcoin rose from $60,000 to $1 million estimated to arrive. Several other currencies "buy you coin, ethereum, tron, doge, shibu inu, solna" etc.
News from the Economic Times estimated cryptocurrency investments to grow 2 to 5 times in a matter of days. A five-fold increase in investors was reported in the youth segment in India. America's largest Coinbase Global Inc., in news published on November 3, 2021. News of buying the platform of India based Artificial Intelligence company named "Agara" came. The Block Chain and Crypto Assets Council of Cryptocurrencies also started pretending that they would self-regulation in their advertisements, but this did not happen and it was not possible because those who have their own implications, how far they will be able to do self-regulation. Along with these news, confusion has also spread that it has been decided to declare cryptocurrencies in Income Tax Return (ITR), the government may recognize cryptocurrencies and that the government is preparing to impose GST and income tax on bitcoin. Intermittent declines were also recorded in the prices of various cryptocurrencies. The news of 10 September 2021 declined from 13 per cent to 18 per cent. With the introduction of the Cryptocurrency and Regulation of Official Digital Currency Bill in the Parliament, the rate of bitcoin fell by 20 percent and many other switchcoins, Kuber etc.
The US$3000 price of another currency "Squid Paper" dropped to zero within minutes. Cryptocurrency aimed to impress young investors in India At the Cricket T20 World Cup in Dubai, "Coin DCX" spent $500 million in ads showing 51 times in each match and a total of 10 hours throughout the tournament. There was a time slot. The Governor of the Reserve Bank, Shri Shakti Kant Das has expressed apprehensions about the economic instability of the country due to cryptocurrencies.
According to the Reserve Bank of India quoted by the Economic Times, in September 2021, 2 billion dollars (about Rs.14500 crores) were transferred abroad from India, with cryptocurrency being the main reason. As per the report of Enforcement Directorate (ED) only in the last year (2020-21). There was an economic offense of money laundering of Rs.4000 crores. After this, on 13 November 2021, the Government of India held serious discussions on cryptocurrencies. The Prime Minister, Shri Narendra Modi, took note of the misleading advertisements of cryptocurrencies and also cautioned the investors against the dangers of money laundering. After this, following the decision of the Internet and Mobile Association of India (IAMAI), advertisements of cryptocurrencies were stopped. The Government of India has already tabled the "Cryptocurrency and Regulation of Official Digital Currency Bill" in the Parliament which deals with the regulation of the official digital currency of India.
On 18 November 2021, the Prime Minister, Shri Narendra Modi, at the Global Conference in Sydney, warned all the countries of the world about the dangers of cryptocurrencies and warned that investments through cryptocurrencies should not fall into the wrong hands, our youth power should not be destroyed and This investment should not be used for money laundering and terrorist funding. He also warned the world that these cryptocurrencies should not be misused on the liberal system of democracy. He said that India is a pioneer in the field of digital and cyber technology and digital technology is being used in the field of governance, benefiting the public, and promoting the startup ecosystem. In a statement released on November 19, 2021, former US presidential candidate Hillary Clinton also cited cryptocurrencies as a factor in the instability of the global economy and said that cryptocurrencies would weaken the US dollar and destabilize countries. India's Financial Action Task Force (FATF), which is 39 countries and monitors money laundering and terrorist financing in the world, is also obliged to abide by the conditions.
The developments in the context of cryptocurrencies in India have changed rapidly over the past month. The decisive decision of the Government of India has certainly halted the move of the crypto market. Progress on the "Cryptocurrency and Regulation of Official Digital Currency Bill" in this regard may be made in the next Parliament session.
Nevertheless, it is necessary to know the basic facts of the ill effects of cryptocurrencies.
1. Due to the increasing demand for cryptocurrencies, our money will go abroad due to investment. This will adversely affect the foreign exchange market.
2. The increasing demand for cryptocurrencies will lead to conversion of crypto into assets and this will lead to an imbalance in the money market and weakening of the rupee. Domestic savings will decline and GDP will decline.
3.There is no question of any compensation but also no legal process can be resorted to when investors lose money in the uncertain market of cryptocurrency market.
4. In whose hands the investment in cryptocurrencies will go, it will not be known. This will give rise to terrorist funding.
5. Any technical glitch or crash in the computer can sink crypto investments. So cryptocurrency is very harmful for the economy of India in every respect and it will weaken the economy and our currency Rupee. India will progress and meet the challenges through modern technology economy of Blockchain in the world through its regular digital currency.