The rising popularity of cryptocurrency signifies the importance of blockchain technology. It is here to stay, grow and flourish. But the future of cryptocurrency depends on the government putting in place a regulatory framework that not only protects those who invest but also encourages and boosts innovation in the space.
Why do we need cryptocurrencies to be regulated?
Touted as the digital currency of the future, innovation is the only way cryptocurrencies can disrupt traditional currencies and trading. However, there are many challenges that come up in developing this technology. The volatile nature of cryptocurrencies, the rise of altcoins and the security risk they bring, are a cause of grave concern. Cryptocurrencies are frequently looked at for money laundering and the funding of nefarious activities. This calls for regulation of the currency to allow investors to buy and sell crypto on a crypto exchange in India without worrying about security breaches.
What is India’s stand on regulating cryptocurrencies?
The Indian government has taken its time to study, evaluate and consider the potential and dangers of blockchain technology. Over the years, their stand on the issue has wavered with the various advancements in space. They first restricted cryptocurrency transactions in 2018, preventing financial institutions from conducting transactions on any platform. In 2019, they decided not to regulate it but ban it entirely. Things took a turn in 2020 when the Supreme Court provided relief to traders and investors alike. The Finance Minister’s acceptance boosted morale that the government will seize the moment and regulate cryptocurrencies.
Once regulated, blockchain led companies will have the opportunity to shine and dominate the cryptocurrency space across the world. It can help create new jobs and boost economic growth. In fact, there are numerous projects currently being worked on with global impact at the core of what is being created. Protocols and frameworks are being set to connect blockchain networks, addressing challenges faced currently by Ethereum.
The future of cryptocurrency
Given India’s talent base, and the spectacular potential that can be unleashed if cryptocurrency is decentralized, the day would not be far when the nation can be home to the best cryptocurrency exchange in the world. Not only does cryptocurrency change the way investors think about investing, it also has the power to reduce India’s dependency on the dollar. Wondering how this may be possible? If global trade adopts a decentralized cryptocurrency, then imports and exports have better predictability in terms of trade and payments.
Cryptocurrencies level the global playing field for investments and wealth creation. As the technology evolves, so has investor interest, which explains how the investor base in India accounts for more than 10 million people. Platforms like Zebpay are gaining momentum with services that streamline and secure crypto transactions, keeping the investors’ best interest at the core. To transform the future of cryptocurrency, it is on the regulatory bodies to step up and join the movement. The RBI is even considering a Central Bank Digital Currency which will be based on blockchain technology. If this comes into effect, there will be no stopping India from ruling cryptocurrency conversations across the globe.