Summit for Democracy: PM moots social media, cryptocurrency norms

What is the news? The Prime Minister of India has virtually addressed the Summit for Democracy. What is the Summit for Democracy? The Summit for Democracy was a virtual summit hosted by the United States to renew democracy at home and confront autocracies abroad. Themes: The three themes of the summit are defending against authoritarianism,… Continue reading Summit for Democracy: PM moots social media, cryptocurrency norms

Despite risks, there’s great potential in cryptocurrencies

News: Reports indicate that the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is to be introduced in this winter session of Parliament. While it is unclear what the Bill will contain, if India goes the China route and bans cryptocurrencies, it would be unfortunate. What is the way forward? – The underlying blockchain… Continue reading Despite risks, there’s great potential in cryptocurrencies

How to regulate crypto, minus a crypto-specific law

News: Bringing a new legislation for Crypto regulation may not be necessary in India until Cryptocurrency transactions reach a widespread adoption. Till then, a more prudent approach would be to extend our current regulatory frameworks, along with the associated enforcement apparatus, to regulate cryptos as yet another class of assets. What are the challenges the… Continue reading How to regulate crypto, minus a crypto-specific law

The tech holes that ensure that crypto can never be effectively banned

News: Experts have stated that it is not possible to enforce an effective ban on cryptocurrency in a foolproof manner. Why banning Cryptocurrency is not possible? Peer to Peer networks: Users can always transact using peer-to-peer networks. This is exactly what happened in India post RBI’s restrictions on Indian banks in 2018. Defi platforms: Users… Continue reading The tech holes that ensure that crypto can never be effectively banned

On Cryptocurrency regulation – Arguments against regulating Cryptocurrencies are very weak

News: Despite all the arguments being put forward for non-regulation of Cryptocurrency, government should push forward and regulate it. Why Cryptocurrencies need to be regulated? – Self-regulation is not the solution: Once one exchange puts out a misleading advertisement, making false claims of higher returns,  rival exchanges are left with no choice but to match… Continue reading On Cryptocurrency regulation – Arguments against regulating Cryptocurrencies are very weak

Cryptocurrencies in India: Ban or Regulation? – Explained, pointwise

For 7PM Editorial Archives click HERE → Introduction The contentious topic of cryptocurrency ban or regulation is garnering headlines as the Government announced that it’s planning to move a Bill regulating private cryptocurrencies in India during the upcoming winter session of the Parliament. While the details of the bill are still awaited, the topic merits a discussion. What… Continue reading Cryptocurrencies in India: Ban or Regulation? – Explained, pointwise

What is RBI’s stand on the use of cryptocurrency

News: RBI governor has raised his concern over the cryptocurrency investment in India. How the RBI has responded to the crypto business so far? Read here: Cryptocurrency in India – Lessons from other Countries The RBI has raised its concerns over the usage of a cryptocurrency over macroeconomic and financial stability points. It wants to explore… Continue reading What is RBI’s stand on the use of cryptocurrency

Managing Cryptocurrencies

News: Since March 2020, when the Supreme Court ruled it was legal to trade Cryptocurrencies, over Rs 50 crore in Crypto-assets is traded every day by resident Indians. On the other hand, RBI has often expressed its serious concerns regarding the dangers these instruments pose to macroeconomic and financial stability of the country. Hence, governments… Continue reading Managing Cryptocurrencies

El Salvador’s crypto foray offers a cautionary tale for other countries

Synopsis: The tiny Central American nation of El Salvador has embarked on an interesting experiment by recognizing bitcoin as legal tender. This is proving painful for many of its citizens, but it’s a useful “pilot” project for larger economies that are contemplating about this new asset class. Introduction El Salvador has a population of 6.5 million and… Continue reading El Salvador’s crypto foray offers a cautionary tale for other countries

China says all crypto-related transactions are illegal

What is the News? China has said that all crypto currency transactions in China, including transactions using Bitcoin, will be deemed illegal.  China and Cryptocurrency China has been one of the world’s largest crypto-currency markets.This is despite the fact that trading in crypto-currency has officially been banned in China since 2019. However, the recent announcement… Continue reading China says all crypto-related transactions are illegal