Recently, in a meeting held between the reserve bank of India and the government, the government decided to curb down the movement of cryptocurrency. However, there were different views of government as well as the RBI. Back in time, the reserve bank of India also decided to shut down the movement of cryptocurrencies completely, and I did not allow banks to give facilities to the people who hold bitcoins. After that, an order was given by the Supreme Court that this order needed to be ruled out. The RBI is not allowed to cut down any financial facilities to any country citizen, even if they hold bitcoin or any other cryptocurrency. Bitcoin is a scorching topic in every country of the world, and in India, it is taken very seriously by the government. Therefore, bitcoin is in talks between the government and the other financial service providing authorities.
The government of India recently took up the decision that bitcoins are an incredible medium of making payments and trading. Still, it is a threat to the financial system. Therefore, a certain degree of regulation is necessary for this incredible digital currency. The country came up with every new decision to allow cryptocurrencies as a regulatory asset, but people cannot use them to make payments. As far as it is concerned about making a payment with cryptocurrencies, it will hinder its financial system. People will no longer use the Fiat currency, which will be a downfall of the Indian rupee. Therefore, the country's citizens will not be allowed to make payments with bitcoin, but they still can trade and keep it as an investment to make huge profits.
According to reports, the winter session of the Parliament is about to approach, and the Indian government is coming up with something new. It is looking forward to bringing about a crypto regulation Bill in Parliament. This bill is about to be finalised, and it is ultimately going to change the earlier financial plans of the country. Also, earlier, the government was looking forward to placing a ban on cryptocurrency trading ultimately, but now, it has come up with something new. It is believed that the authorities are looking forward to bending the active solicitation of cryptocurrencies. However, the bill will bring under the most prominent trading exchanges and platforms dealing in Bitcoin in Ukraine
As a result, the issue of advertisements on trading and using it for payments has become a considerable debate. Nowadays, many immense use influencers who are big into the cryptocurrencies, like Tanvi Ratna, the founder and CEO of the think tank company policy 4.0, are stating their views about it. The bill that the government is about to pass has been a significant change for the cryptocurrency companies in India. Therefore, it is going to bring about a lot of changes. Also, some huge companies have stopped advertising their cryptocurrency services in august. Also, the government held a personal meeting with the user representatives of the cryptocurrency industry on Monday. It also included the reserve bank of India and the Indian government.
The Reserve bank of India, being the financial body of the country, is still worried about the regulatory system that the government is about to bring. The representative of the reserve bank of India is worried that regulating cryptocurrencies as an asset is still not going to solve the problems that the authorities and the government is facing. However, the regulation the government is going to bring will rule it out of the currency arena, but it is still going to pose a threat to the other financial systems of the country. The government is also worried about defining the class of assets in which cryptocurrencies will go down. Nowadays, cryptocurrencies do not exist physically and therefore; they cannot be classified into commodities.
Also, there is a matter of concern about the price volatility of cryptocurrencies. Different cryptocurrency exchanges offer volatile prices for one particular cryptocurrency. Hence, it can pose a severe threat to the regulatory system as well. The regulator will not be able to assess because there will be multiple prices for one currency. The body will not be able to know which price they should take into consideration for its regulation. The considerable price difference between different exchanges will make it difficult for the government to regulate cryptocurrencies as an asset.