Cryptocurrency is the next big thing in the world after computers and the internet. Cryptocurrency has the potential to aid a countrys economy, however, the revolutionary technology is on halt across India from 2018. The Reserve Bank of India or RBI did impose certain restrictions on cryptocurrency that prevents cryptocurrency firms from getting any financial aid from the banking institutions. Further, this has put the vast and ever-growing cryptocurrency sector in an absolute state of oblivion. By the end of the first quarter of 2020, the Supreme Court has lifted the restrictions on cryptocurrency trading and mining in India.

India is one of the largest democratic countries in the world and four years ago we witnessed demonetization. People across the country, honest and daily wagers who had nothing to hide from the federal banks or the government had a tough time to fulfil their basic amenities such as food, water, and shelter. The inescapable truth is after the price of Bitcoin surged to $18,000, Indians could have been benefited significantly by investing in the sector. Its never too late to make some changes that would benefit the economy of a country. There is a highly likely chance that India will witness a paradigm shift in the economy now that cryptocurrency is legal in the country.

Cryptocurrency will bring a new frontier in economic growth

For a couple of years now, India did miss out on a massive opportunity to make funds with cryptocurrency with RBI deeming cryptocurrency as illegal. More than $5.5 billion is reportedly invested into numerous blockchain start-ups, worldwide. Previously, blockchain start-ups in India used to receive only 0.2% or below in terms of investment. Another Asian country, Singapore which is an early adopter of cryptocurrency did receive over $744 million in terms of capital inflows.

Cryptocurrency is providing reaping benefits to early adopters such as European countries, China, and the US. Given that the entire world is watching the next moves that China is going to put after the COVID-19 and the potential war, China and the US are racing to be leaders in both cryptocurrency and blockchain since the worldwide acclamation of the technology.

In Asia Philippines and Thailand have already kickstarted the curation of regulatory guidelines to support the local cryptocurrency trading and investment with tools like the Bitcoin Up trading robot. Additionally, both Thailand & the Philippines have already begun to develop frameworks that would boost the protection of the investor and at the same time approve licenses for numerous cryptocurrency exchanges.

Its not too late for India to establish itself as an innovative cryptocurrency and blockchain hub as the scenario is finally in the favour of cryptocurrency enthusiasts and traders. India has diversified and skilled Information Technology developers as well as entrepreneurs, who could aid the company to become a leader in cryptocurrency as well as blockchain.

RBIs Stance on Cryptocurrency

None of the governments and central banks across the world can ignore non-fiat currencies as they bring benefits of their own. In time, RBI might consider curating its own cryptocurrency that will act as a common bridge between fiat currency and cryptocurrency exchanges and transactions. The reason why RBI and other central financial bodies. Additionally, cryptocurrencies also possess several features that the conventional fiat currency doesnt and these are the primary reasons why people are in love with cryptocurrency.

Cryptocurrency and blockchain also bring comfort to the speculators as blockchain generates an enormous money supply. Technically, the central banks do not control money or the rate of inflation. Also, the money supply is governed by challenging mathematics, and this makes receiving banking ungainly as there is a need for exchanges or currency swaps.

Now that India is going through turbulence in Economy, regulating cryptocurrency is the most viable way of dealing with the great depression of the 21st Century. Sathvik Vishwanath revealed that several merchants in Bangalore still take the payment in Bitcoin. As of now, Indians can trade with both fiat currency and cryptocurrency. In no time, the craze of Bitcoin will catch on with the Indian masses.

How can cryptocurrency benefit India?

In India, people, regulators, traders, and miners will attain clarity regarding crowdfunding, ICOs, cryptocurrency, activities related to cryptocurrency and their products due to the recent judgement passed by the Supreme Court. Furthermore, people will get an overview of the legal stance of cryptocurrency across the country. The cryptocurrency industry in India can bring equitable growth as well as sustainability which in turn would promote country-wide economic development as well as stability.

RBI should take up the task to provide systematic guidelines concerning the cryptocurrency industry among the countrymen. The guidelines will instil people to gather licenses to avail services such as financial services, crypto exchanges, banking, payments & processing. If the central bank develops a sturdy framework that meets up with the proposed regulatory requirements, then cryptocurrency will witness a country-wide adaptation.

Institutions, corporations as well as ordinary people will benefit significantly if cryptocurrency becomes the mainstream medium of exchange in the country. Once cryptocurrency becomes accessible, the purchasing power of customers will also increase drastically. Several people in India do not have proper spending power, they could sincerely benefit from the ripple that cryptocurrency will bring forward.

The per capita income in the country is significantly lower, here cryptocurrency will not only enhance the standard of living rather also stimulate the creation of wealth. Retailers across the country have less exposure to trading in international markets. As cryptocurrencies equip traders with cross border payments seamlessly, retailers will finally find solace in international markets. Also, several people across the country do not own bank accounts, cryptocurrency will be a boon for the unbanked individuals.

India has finally entered the dynamic phase after the recent verdict of the Supreme Court. The reason as to why India has lifted the band is that banning unprecedented technology cannot be a long-term solution in the world of finance and trading. Now, the optimistic cryptocurrency enthusiast in me believes that the adoption will give rise to several new innovators, entrepreneurs, businesses, start-ups, products, and services, among others.

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Cryptocurrency regulation in India and its effect on the economy - Siliconindia.com