Given the amount of fancy that people around the world have caught of the cryptocurrency, it is monitoring by the authorities is increasingly becoming arduous. Cryptocurrency, an asset that provides whopping profits, has a clandestine, dark side that regulators are aversive towards.
Cryptocurrency ensures the anonymity of character while doing transactions. This effectively allows black marketers and money launderers to get away unscathed from government authorities. Secondly, the crypto market is unregulated and can be subject to whims and demands of the public which can lead to extreme cyclical fluctuations in the market, which in the long run in not healthy for an economy. Lastly, cryptocurrency is highly unstable, to the extent that the digital asset gained around 1400% last year.
But given all the arguments against the contentious digital asset, it is to be noted that the public is still highly invested in the crypto prospect. This is due to a major reason: high profits. Given its volatile nature, it is quite true that people find it rewarding. People have been heavily investing in the asset, even if it puts them on the wrong side of the law. India has time and again showed its antagonistic stance against the contentious digital asset, to such an extent, that it has ideated on banning the currency. But given the support the digital asset has gained worldwide, India’s central bank is considering launching its very own digital currency. The news has been broken by top bearcats that have emphatically indicated the idea.
The deputy governor of the Reserve Bank of India, T Rabi Sankar, has maintained that the central bank is effectively and seriously considering introducing its digital currency. He added that the introduction of the national digital currency will take place in a “phased” manner. Additionally, to realize this dream, legal changes are being made to the South Asian nation’s foreign exchange rules complementary to the IT laws.
It is to be noted that the digital currency will be effectively backed by the sovereign, thus a legal tender to facilitate legal transactions will be given. The introduction of national digital currency will lower the economy’s robust and increasing reliance on cash which will effectively enable smoother and cheaper international settlements. On the other hand, as aforementioned, cryptocurrency is a volatile asset due to its unregulated characteristic, such an irregularity will be erased with government backing which will effectively protect people from the volatility.