India has a very complicated relationship with cryptocurrencies, and this makes the Bitcoin Future uncertain in India. Bitcoin and other digital currencies are seen with suspicion her and the Government of India is yet to verify it as a legitimate mode or transactions. Countries like Japan, Russia, China, and the USA have accepted cryptocurrency as a legal entity and have made rules and guidelines sounding its use. If India truly wants to embrace the digital lifestyle and accept the digital revolution in all its forms, then it must take Bitcoin and other digital currencies seriously.
The Indian Government’s take on Bitcoin
In April of 2018, the Indian government banned the banks from trading in cryptocurrencies. Bitcoin is a currency that is open source and is not managed by a single entity. It allows anonymity but at the same time, the blockchain system is such that the privacy of those trading in Bitcoin is preserved. Many countries like Argentina are already trading activity in Bitcoin.
The idea of a state-run Bitcoin Rupee
According to the Indian government’s policy plan on digital currency, it is being suggested that a national cryptocurrency called BitcoinRupee should, to replace Bitcoin and other kinds of cryptocurrencies present on the internet. According to experts, this is not a good idea both in terms of policy, practicality, and logistics. The first and most important problem with this proposal is that India, as a developing country that has a great digital divide, does not have the infrastructure needed to build its state-run cryptocurrency. Another hurdle is the lack of technicians and engineers in India who can make a currency like Bitcoin. This digital currency will be made only if a private entity decides to support this plan by investing heavily in it.