Sustained interest from institutions – like Tesla, MasterCard, Paypal, Microstrategy – has pushed the Bitcoin’s price tag up. After jumping by $40,000 or 224 per cent final year to cross the earlier all-time higher level of $24,000 in December 2020, Bitcoin continued its upward journey in 2021 and has crossed the $50,000 level.
However, devoid of any recognition and regulation in India, the future of cryptcurrencies is nevertheless uncertain in the nation.
Although the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 is amongst the list of bills to be presented in the Budget Session of Parliament, but devoid of any clue about the contents of the bill, the uncertainty is nevertheless there.
So, there is no clarity on how this bill would effect the cryptocurrencies and what would be the effect on investors.
“I am optimistic that the government won’t outrightly ban cryptocurrencies. As per Minister of State for Finance and Corporate Affairs Anurag Thakur’s statement in Parliament, the bill is drawing upon Garg Committee’s IMC report titled “Banning of Cryptocurrency and regulation of official digital currency” in 2019. This has in all probability been tweaked to be now named “Cryptocurrency and Regulation of Official Digital Currency Bill, 2021”. It’s intriguing to notice that this time about, there’s no mention of a ban in the name of the bill. The Minister has also added that their intention is to regulate crypto,” mentioned Nischal Shetty, CEO,WazirX.
Cryptocurrency: How distinct is it from other investments?
Talking on the effect on investors, in case cryptocurrencies are banned once more in India, Shetty mentioned, “If the bill proposes a complete ban on crypto – however unlikely – the government has to come up with a path to help over 7 million people who currently hold assets worth over $1 billion, on how to reimburse them for this. Erasing such a large wealth would likely lead to an economic crisis in the country.”
“Recently, as an industry-wide initiative, we have started an email petition campaign where people can write through the link indiawantscrypto.net to the MPs of their constituencies urging them to regulate crypto. Over 15,000 emails have already been sent to local MPs,” he mentioned.