This world has seen drastic changes in the last two century. From exchange of gold as money and later paper notes that have been donated some value. The current time calls for yet another change and that is Bitcoins. Many countries across the world are now showing interest in bitcoins but as an Indian we need to look whether India can accommodate bitcoin or not.
Bitcoin in Relation with India Economy and Banking Laws:
The Reserve Bank of India’s law and Bitcoin’s policy doesn’t come on the same page. The RBI law clearly states that only banking institutions or especially the government institutions can release any prepaid payment instruments. The bitcoin also falls in the prepaid payment instrument as one has to pay dollars, pounds or rupees to first buy the bitcoins.
At first hand it doesn’t fits into the existing banking system of India as it is risky as well draws many suspicion.
Government’s Worry over Bitcoins:
Though the present government endorses digital payments and digital currency yet it is skeptic about the bitcoins. The government fears that legalizing bitcoins in India may lead to rise in corruption. Black money hoarders may start investing their black money in bitcoins as an easy way to avoid legal action. Many black money hoarders in India use the method of Hawala to invest their black money and giving yet another opportunity may cause much damage to the government’s initiative of curbing black money and reducing corruption.
The government has also said that bitcoins are risky to deal for individuals and though the government hasn’t illegalized bitcoins but it will still discourage it as the individual will risk it on its own and as there is no existing law therefore bitcoin fraud will be individual’s personal liability.
Future of Bitcoins in India:
After analyzing the present situation, thinking about bitcoins as a source of digital payment method is still a distant dream. The government has setup a committee to look into this matter about the consequences of bitcoins in Indian market and only after a proper analysis by the government we can expect any future call.
With the changing world, we cannot ignore these changes and we must look into future of bitcoins in India.