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
Tag: cryptocurrency
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
There’s a major new risk in town and it’s called crypto
Synopsis: Retail investors are the ones who’ll most likely suffer in the high-yield, high-risk Crypto market. Government should come up with regulations before its too late. Introduction Crypto products are being mass marketed in India without the oversight needed for investor safety. The crypto marketing campaigns have now reached even tier-II and tier-III cities. How… Continue reading There’s a major new risk in town and it’s called crypto
El Salvador’s gamble on Bitcoin: Much too dicey
What is the news? El Salvador became the first country to adopt Bitcoin as legal tender. But the launch was marked by Chivo app (state-backed wallet app) glitches and crash in the Bitcoin price. This shows the volatility associated with Cryptocurrency is real and the adoption of Bitcoin as the official currency can turn out… Continue reading El Salvador’s gamble on Bitcoin: Much too dicey
El Salvador becomes first nation to adopt bitcoin as legal currency
What is the News? El Salvador has become the first country in the world to adopt Bitcoin as legal tender. This means businesses should accept payment in bitcoin alongside the U.S. dollar, which has been El Salvador’s official currency since 2001. Benefits of making Bitcoin as Legal Tender by El Salvador: Reduce the cost of… Continue reading El Salvador becomes first nation to adopt bitcoin as legal currency
Adopting crypto assets as currency is a risky bet: IMF
Source: This post is based on the article “Adopting crypto assets as currency is a risky bet: IMF” published in Livemint on 31st August 2021. What is the news? The International Monetary Fund (IMF) has warned that adoption of crypto assets such as Bitcoin as national currency can impact a country’s macroeconomic stability. The warning came ahead… Continue reading Adopting crypto assets as currency is a risky bet: IMF
India ranks second in terms of crypto adoption in the world
Source: Livemint What is the news? India ranks second in terms of crypto adoption worldwide behind Vietnam, but ahead of countries such as the US, UK, and China, according to the 2021 Global Crypto Adoption Index by blockchain data platform Chainalysis. Findings India was followed by Pakistan and Ukraine at rank three and four respectively.… Continue reading India ranks second in terms of crypto adoption in the world
It’s time for digital currency to counter crypto, says RBI
Source: TOI What is the news? The Reserve Bank of India (RBI) has said that it is working towards a phased implementation strategy for its digital currency (i.e. Central Bank Digital Currency). Central banks across the world have drawn up plans to launch their digital currency to battle cryptocurrencies. China has said that its e-CNY… Continue reading It’s time for digital currency to counter crypto, says RBI
Cryptocurrencies and Indian regulations – Explained, pointwise
Source: Business Standard Syllabus: GS Paper 3: Indian Economy and issues relating to Planning, Mobilization of Resources Relevance: Cryptocurrencies have the potential to alter the Indian economy and challenge sovereign backing in India Introduction Cryptocurrencies are registering a spectacular rise globally. In India also, despite RBI’s strong reservations, investment in cryptocurrencies by Indians has been… Continue reading Cryptocurrencies and Indian regulations – Explained, pointwise
Facebook officially launches its cryptocurrency Libra
News:Facebook has officially launched its cryptocurrency Libra,despite several high-profile defections from the project and intense criticism from US regulators and politicians. Facts: About Libra: Libra is a virtual currency where users can buy and store in a digital wallet.It can be used for transactions on a decentralized network that is not controlled by one bank… Continue reading Facebook officially launches its cryptocurrency Libra
Understanding cryptocurrencies: What’s to like, and what’s to fear
An inter-ministerial committee (IMC) that was set up to assess the viability of virtual currencies has recommended that India should ban private cryptocurrencies such as Bitcoin. A cryptocurrency is a subset of virtual currencies. It is decentralised, and protected by cryptography. Example: Bitcoin, Etherum, etc. A virtual currency is a digital representation of value that… Continue reading Understanding cryptocurrencies: What’s to like, and what’s to fear
Cryptocurrency panel for ban on private digital currencies, jail time of up to 10 years
Government had constituted a panel to examine all issues related to cryptocurrencies.The panel has drafted a law,‘Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019’. The panel has said that anybody who mine, hold, transact or deal with cryptocurrencies in any form whether directly or indirectly through an exchange or trading should attract… Continue reading Cryptocurrency panel for ban on private digital currencies, jail time of up to 10 years
G7 urges strict Libra regime, eyes minimum tax
G7 Countries has said that digital currencies such as Facebook Libra raise serious concerns and must be regulated as tightly as possible to ensure they do not upset the world’s financial system. Recently,Facebook had decided to launch a cryptocurrency called Libra.The currency is designed not to be a speculative asset like Bitcoin but a form… Continue reading G7 urges strict Libra regime, eyes minimum tax
Facebook to unveil new cryptocurrency
Facebook has decided to launch a cryptocurrency called Libra. The currency is designed not to be a speculative asset, like Bitcoin, but a form of digital money backed by a reserve of assets. Facebook has also formed the non-profit Libra Association with 27 other partners to oversee Libra and its development. The partnership includes venture… Continue reading Facebook to unveil new cryptocurrency
Draft bill moots 10-year jail for crypto dealing
Government has introduced a draft bill on Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019. The draft bill says that anybody who mine, hold, transact or deal with cryptocurrencies in any form whether directly or indirectly through an exchange or trading can attract a jail term of one to 10 years. The… Continue reading Draft bill moots 10-year jail for crypto dealing
Crypto currency is Ponzi scheme
Investor Education and Protection Fund(IEPF) Authority has said that Crypto currency is a ponzi scheme and should be banned in India to protect the interests of investors. IEPF has also said that crypto currencies are based on blockchain technology and there are concerns about its viability in the long-term due to risk to investors,especially considering… Continue reading Crypto currency is Ponzi scheme
