Cryptocurrencies are getting increasingly popular in India. Coffee table discussions have cryptos in them today. Many people that I meet are aware that there are new investment instruments such as virtual currencies even if they don’t know how to get involved.
Indian government and banking structure however is yet to welcome this growing popularity amongst its citizens towards digital currencies. Bitcoin, the first cryptocurrency ever created was made to disrupt traditional methods of banking. Nearly a decade after its invention it is begun putting central banks and governments across the world on the backfoot.
Let’s take India for example. In the past year or so, Bitcoin has seen massive gains, and the entire cryptocurrency space has witnessed tremendous growth. So much that at press time, BTC’s market dominance is a mere 35%.
The Indian government and RBI-our central bank is not in the least bit pleased about it. They have no intention of declaring Bitcoin or cryptocurrencies as legal tender or mode of payment in the country.
People here are quite unhappy with some of the government's policy and aggressive taxation. Therefore, many have completely ignored its warnings to desist from trading in cryptocurrencies.
Despite repeated warnings from the government and the central bank-Reserve Bank of India, citizens across the country are queuing up to exchanges to buy their favourite cryptos. So much that the exchanges are heavily burdened by new signups and are backlogged for weeks on end.
This has led to the government ever increasing its arm-twisting tactics. It’s attempt to show its brute strength as the all powerful authority controlling its citizens’ money and their lives has led to further dissent in crypto circles.
From raiding exchanges and harassing Bitcoin investors by way of tax notices the government seems to be leaving no stone unturned in its attempt to clampdown this crypto euphoria. According to this report which hints that RBI has been pushing for these tax raids as well as arm-twisting banks into getting out of business with crypto-exchanges or making it harder for exchanges to deal with their customers.
The delays in deposits and withdrawals that we face are largely due to the corrupt nature of central banking prevalent everywhere including India. Inspite of exchanges creating a positive environment by ensuring complete transparency by way of KYC and online transfers, bankers are breathing down their necks.
Setting up I-T task force, repeated warnings, tax raids, notices to investors, clampdown on intermediaries such as banks and payment gateways, lack of regulation and policy, creating a sense of panic and chaos are all part of government’s desperate attempt to rein in citizens right to choose what they want to do with their money and slow down this rapidly growing trend of investing into cryptocurrencies.
That’s not all, few litigants have filed PILs in order to curb growth of disruptive cryptocurrencies in India. This is the state of affairs in one of the fastest growing economies in the world where our government adheres to archaic laws to prevent growth and prosperity of its own citizens as it continues filling its coffers in numerous ways!
However, fear not! Government of India maybe 100% clear about not legalising cryptocurrencies anytime soon but it is not banning them-atleast for now. Crypto market will continue its growth in India as it will in the rest of the world.
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