India and Blockchain Technology:
Cryptocurrencies are nothing but privately-built blockchain applications with use in health, governance, IP management and finance. Their use as a currency is only one of the many use cases. Recently India aims to enact legislation to outlaw the private cryptocurrencies and provide a basis for the development of an official digital currency during the parliament's current budget session. The ban is expected not to be enforced overnight and cryptocurrency investors will be given a transition period of three-to-six months after the implementation of the new law to liquidate their investments.
As per the” The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021”, the bill seeks to create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency i.e. Blockchain and its uses.
In 2018, the Indian Government had banned all cryptocurrencies with strict rules for offenders, their prime concern was that these currencies are not made of metal or exist in physical neither was stamped by government. However, these proposal was challenged by several exchangers and traders. However, in March 2020, the Supreme Court of India lifted the ban, and cryptocurrencies have been operational in India ever since.
Experts believe that it is necessary to have a regulation; the absence of which can seriously lead to rise of Black Market. However, the implementation and result of the same is something which we have to wait and see in the coming future!