India is going through a digital revolution. Where on one hand the government is encouraging the use of digital in majority of sectors, it is placing a ban on crypto-currencies which is creating a havoc in the industry.
According to the official release by the Press Information Bureau (PIB) of the government of India, the country’s financial stability and development council (FSDC) has deliberated banning the use of private crypto-currencies in India, in a meeting on Oct. 30. The FSDC is a high level committee of officials, headed by Finance Minister Arun Jaitley, to study risks to the Indian Financial system.
The crypto-currency market is suffering in India since the Reserve Bank of India’s (RBI) regulation of barring the Indian banks from having any business relationship with exchange and traders. The trading volumes have dropped down significantly since the move. The exchanges have only existed in form of peer to peer and crypto to crypto trade. A Blanket ban will stop even that which would cause all exchanges with only two options – one would be to shut down and other would be to move to a foreign location where the crypto trading is legal. The latter option being not too feasible for smaller exchanges, will cause a loss of business.
Apart from the damage to the economy, the already technologically poor India will also face a damage in terms of block chain related technological development. The government of India is keen on adapting the use of block chain technology in healthcare, banking, real estate, education and farming. However, according to the experts, this approach is a contradiction and dos not make sense.
The block chain technology is closely bound to crypto-currency. Removing crypto-currency from the block chain will make the database extremely slow, and hinder with the operations. This will shy away the institutions in the country from using this outstanding technology.
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The CSR Journal Team