Nevertheless, the groundwork for a ban on cryptocurrencies might have been unintentionally laid a number of years in the past when the federal government launched its Jan Dhan-Aadhaar-Cellular trinity within the early years of the primary Modi authorities.
JAM was a mammoth challenge undertaken by the federal government to enrol a majority of the nation’s citizenry into the monetary system by utilising their social safety quantity, or Aadhaar quantity, and utilizing that community to instantly switch subsidies.
“The Aadhaar challenge was rolled out to make sure that all people has an account with the federal government, they usually have their IDs and funds. I feel that’s a part of the rationale why they’ll crack down on cryptocurrencies,” Brent Johnson, CEO of the San Francisco, US-based Santiago Capital, advised ETMarkets.com in an interview.
The Distinctive Identification Authority of India has issued over 122 crore Aadhar playing cards within the nation, overlaying over 90 per cent of the inhabitants as on March 2020. In line with UIDAI, 96 crore out of the 110 crore financial institution accounts have been linked to Aadhaar numbers.
In the event you add to this the variety of cell community connections in India, it’s secure to say that the community for issuing a sovereign digital foreign money that’s accessible to every body is already existent. “The federal government in all probability desires to make use of that to subject its personal cryptocurrency and authorities simply doesn’t like competitors,” Johnson mentioned.
Not too long ago, RBI’s transfer to permit retail buyers to instantly open an account with its e-Kuber setup to buy authorities bonds within the major and secondary markets has additionally raised curiosity amongst market contributors that it may act as a pre-cursor to the difficulty of a digital rupee.
RBI Deputy Governor BP Kanungo advised journalists that an inside panel of the central financial institution is engaged on a mannequin for a digital foreign money. “We had a committee that’s nonetheless on the drafting board. In truth, an inside committee is taking a detailed look to resolve the mannequin of the central financial institution digital foreign money and you’ll hear from RBI very quickly on this matter,” Kanungo mentioned.
There over 75 lakh cryptocurrency homeowners in India with their whole holding valued at greater than $1 billion. Crypto fans within the nation have lobbied with the federal government to rethink the proposed ban, arguing that non-public cryptocurrencies can co-exist with a sovereign digital foreign money if they’re outlined as digital property, and never personal foreign money.
Whereas it stays to be seen if the federal government will water down the invoice to permit people to personal cryptocurrencies like Bitcoin, it seems that what’s within the offing might have been foreseen a very long time in the past.