- Alok Joshi
- Senior Journalist for PRESS24 NEWS Hindi
Many people were to be relieved to hear that the government would bring a law on cryptocurrencies, but the opposite happened. There has been a panic in the cryptocurrency business and seeing the news that is coming in the filter, it seems that the chaos will continue for now.
You must have seen the game of toss i.e. coin toss, but many times instead of tossing the coin for the toss, children make it dance like a chuckerghini.
The weight of the coin and the quality of the floor determines how long it will dance and then when the coin will be head or tail when tired and making loud noises.
The case of bitcoin is also like the coin made at this time. Now it is difficult to say how long it will keep spinning.
Such a sharp comparison is not unnecessary. The reason is that the government has made many things clear, as soon as the draft of the Cryptocurrency Bill comes out, a lot more will become clear, but now there is every possibility that even after that, there are many questions in this story. Will stand and the confusion which was expected to end may have increased. That is why it is said that how long this coin will continue to dance is not known.
confirm two things
From the details given by the government in the list of contents of the Parliament to introduce the Cryptocurrency Bill and the name of the bill, it is clear that there are two things to be done here. One is to ban private cryptocurrencies and secondly, the rules of how the government digital currency will come from the Reserve Bank of India, how it will run, are to be decided.
What digital currency will the Reserve Bank bring, how will it run and how much will it be digital and how much currency, the answers to all these questions will be revealed soon because soon after the bill is passed, that is, next month, the Reserve Bank will start pilot testing of its currency. Will give such preparation.
But the formidable questions are on the other side i.e. how will the banning of private cryptocurrencies work? What would be considered a private cryptocurrency? And as per the details given in the table of contents of the Parliament, what would be the few cryptocurrencies that would be allowed to operate as an exception and what would be the basis for giving them this exemption?
hidden layers within questions
There are some more layers hidden within these questions, but before going on them, it is important to understand that what is a cryptocurrency or a crypto currency? If you look at the meaning of crypto in the dictionary, it is written – hidden or confidential. That is why its name in Hindi fits right as Kootamudra. You may not even have heard the word cryptography, but this whole business rests on this, that is, on the principle like cryptography.
In simple language, cryptography will be called the art of hiding information. Similarly, cryptocurrency is a theory that uses digital files as money. These digital files are also created on the lines of encryption. These are very hard codes and digital signatures are used to keep the transaction secure so that the payee can also be sure that the transaction has actually happened i.e. this hidden currency has reached him.
It sounds simple to hear, but this is the reason why many doubts and questions arise and keep happening on its existence or the safety of your money in it. But on hearing about the earning of eight thousand percent in the last five years, the doubts of many people get cleared and saliva starts dripping.
The result of this is that not millions but crores of people in India are sitting by investing money in such cryptocurrencies. How many such people are there and how much their money is stuck, there is no reliable data about it.
But a full-page advertisement was given by the cryptocurrency business in the past, in which it was claimed that crores of investors of the country have invested about six lakh crore rupees in cryptocurrencies. This is a huge amount. Three percent of the country’s GDP and about one-fifth of the previous budget.
Is that much money really invested in cryptocurrencies? No one can answer this, because the trading of cryptocurrencies, despite being online, is an underground business in a way.
government several times signal given
The advertisement also has the names of cryptocurrency exchanges at the bottom and Internet and Mobile Association of India and BACC i.e. Blockchain and Crypto Assets Council above them. BACC has put in place a code of conduct for crypto trading in India and it is stated here that the exchanges and companies involved in it adhere to it.
But this is all a role. The real point in that advertisement is that in order to protect such a huge amount of money for so many people, it is necessary that the government should create a transparent and regulated system to regulate crypto business, that is, create an environment.
In the recent past, Prime Minister Narendra Modi has discussed cryptocurrencies more than once. The Standing Committee on Financial Affairs of Parliament has not only discussed this, but has also called people associated with this business and held long talks with them and economic experts. It seemed that the government has now made up its mind to give a green signal to this business.
However, in the meantime, the Governor of the Reserve Bank had rang alarm bells on more than one occasion. RBI Governor Shaktikanta Das even said that he does not see any serious discussion taking place in the country on this subject and also that when the Reserve Bank expresses serious concern on this subject after deliberation, it means that the matter is very complicated. .
This is not the first warning from RBI. The RBI governor has openly expressed his concerns on this issue in the past, but when this warning came, it was at the same time that a meeting was held under the chairmanship of the Prime Minister. The Parliamentary Standing Committee had discussed this and people engaged in the cryptocurrency business by advertising in newspapers, running programs on TV and radio, and paying for the big conferences of the channels were constantly trying to create an atmosphere that this is a very good business and The government should allow it and make its rules accordingly.
Shaktikanta Das also said that Blockchain technology is ten years old and this technology can progress even without cryptocurrency. Reserve Bank Governor Shaktikanta Das also expressed the apprehension that this figure of cryptocurrencies with people in India is being exaggerated. Secondly, they also feel that seventy percent of the people who have bought cryptocurrency have not put more than three thousand rupees in it.
Obviously this statement of the governor was a sign of the times to come. If government people and many lawmakers are in a hurry to make laws on cryptocurrencies, then one of the reasons could be that they feel that this business is growing very fast and if it is without any rules and regulations. In the same way, if unbridledness continues to grow, then some difficulties may arise in the future. But now it is clear that the government is preparing to rein in the cryptocurrency business.
Difference between private and public cryptocurrencies
Now the question is what is the government going to do. He has made it clear that private cryptocurrencies will be banned but the first dilemma is on this matter. In the business of cryptocurrencies around the world, private and public cryptocurrencies are differentiated on the basis of how much privacy is available in them.
Here this business needs to be understood a little more. Cryptocurrency transactions are not like banks where your account details are recorded in the ledger or ledger of your own bank. This business is run on many different ledgers connected to each other on the Internet, in which blockchain technology works to coordinate with each other. As soon as a transaction is done in one account, it automatically goes to every ledger in the entire network and there its cross checking takes place i.e. the transaction is confirmed.
This means that there is no scope for any wrong entry, wrong accounting, or forgery. If any transaction of any ledger does not match with all the ledgers of the entire network, then it is automatically cancelled. This also means that if you can see one of these ledgers, you can see all the deals happening across the network. It can also be seen in whose wallet how many bitcoin or other cryptocurrency coins are going in or out.
Currencies like bitcoin, ethereum and litecoin work in the same way. You definitely get so much privacy that your name address is not visible there, only the name of your digital wallet will be visible, but if needed, the wire of inquiry can reach you. For this reason, the currency that does such work is called public cryptocurrency.
But then there are some such currencies which do not even keep all this information in front. There, not only the address of the wallet, but also the details of the transaction are kept hidden by using more complex codes. These are called private cryptocurrencies. These include names like Monero, Zcash and Dash, among many others.
But this definition will continue in international business. In India, public and private have the same meaning, government and non-government. Looks like the same thing will happen in this case. That is, the digital currency of the Reserve Bank is government, it will run and everything else is private i.e. they will not run. But after that it is also written in the essence of the bill that there will be some exceptions in the ban on private cryptocurrencies. Which will be these exceptions, that is, which currency will be exempted from the ban, this is the biggest question of this time.
Sources say that the government is going to give the authority to the Reserve Bank to decide which foreign cryptocurrencies will be allowed to run in India and which will not. That is, now the one whom the Reserve Bank has given permission to work is government and the one whom RBI has not given green signal will be considered as non-government.
According to sources, the decision of the Reserve Bank will play a big role in which technology is being used by cryptocurrencies and how beneficial that technology can prove to be for India.
What can withdraw money
Along with this, there are also indications that people who have invested in cryptocurrencies will get time to withdraw their money. Details of this can be found in the draft of the bill or later the government will issue a notification and tell by which date people will have to clear their account.
This will give great relief to many people that their money is not in danger of sudden drowning, but now until the law comes out and it is not clear which coin will be banned and which RBI will be kind, then till then the people associated with it will be at peace. It’s hard to meet.
Disclaimer: This post has been auto-published from an agency/news feed without any modifications to the text and has not been reviewed by an editor.
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