The idea of conducting transactions with different types of cryptocurrencies has taken the world by storm. However, it has a number of complications that resulted in a lawsuit in the Supreme Court involving the Government of India. The RBI banned all cryptocurrency transactions and the Supreme Court gave the government four weeks to draft sensible and comprehensive law regulating the use of cryptocurrencies.
After nearly two years of uncertainty about the fate of cryptocurrency use in the country, the Supreme Court ruled this March. Photo courtesy of Pixabay
The main concern of the Supreme Court wasn’t how the cryptocurrencies worked, but the fact that many of them were unregulated, which left loopholes for all types of economic crimes. The central bank had even decided to ban all operations over cryptocurrencies until there were sensible laws regulating their operations.
Prohibition of all cryptocurrencies
In April 2018, the National Reserve Bank of India (RBI) imposed a ban on all trading activities in cryptocurrencies. The move was taken to cut out what the central bank called the demarcation of the country’s financial system.
The move was viewed as devastating for the nearly five million cryptocurrency users in the country. The main complication that emerged after the ban was announced was that everyone who bought the currency was trying to dispose of it as quickly and efficiently as possible.
As expected in such a situation, cryptocurrency sales and costs increased by up to 10 percent. This means that people were willing to take a loss on their original investment and at least make a little of the money they had saved. At the time, the only consolation investors had was that the RBI hadn’t banned them from keeping their Bitcoin in their digital wallets and trading with them in overseas accounts.
To be fair, the government had warned investors, telling them that using cryptocurrencies posed economic, financial, and legal and consumer risks. When they finally took action against the sector, it was shocking, but not unexpected.
How cryptocurrency trading is done
Trading cryptocurrencies is lucrative as it opens up a world of opportunity for buyers and sellers. In order to participate, you need a trading account and an e-wallet in which you can save your currency. The most popular cryptocurrencies in India are Bitcoin, Ripple, Ethereum and Litecoin. Then you can get any of these currencies from a trusted cryptocurrency casino.
You can buy and sell the currencies depending on how they are traded and when you are likely to get good returns on their sale. In addition, there are tons of online stores where you can use Bitcoin as a currency.
Why cryptocurrency is popular
Cryptocurrencies are popular for a number of reasons. These include:
- The transactions are quick and efficient. You can process hundreds of transactions within a minute.
- The wallets provide anonymity when needed, making the currencies ideal for gaming and other online purchases that you’d prefer to keep to yourself.
- When the system is optimized and the right measures are taken to control usage, the cryptocurrency can increase the efficiency of online trading and reduce problems such as chargebacks and others.
- International trading is made easier when you use cryptocurrencies. Before, buying something from another country was slow and complex. First, the two countries would need to have business agreements that easily regulate financial transactions between institutions. Then it takes some time for the transactions to jump from one institution to another and be verified. Sometimes the verification process takes up to 24 hours. In the fast paced world we find ourselves in today, faster transactions are preferred.
Trading cryptocurrencies is lucrative as it opens up a world of opportunity for buyers and sellers. Photo courtesy of Pixabay
The celebrated court ruling
After nearly two years of uncertainty about the fate of cryptocurrency use in the country, the Supreme Court ruled this March. A bank with three judges listened to the petitions of individual investors against the ban on the use of cryptocurrencies and ruled in their favor.
Even after many rounds of hearings, a clear decision had not been made. However, the new ruling has been welcomed by many as they believe it will open the country’s economy to a whole new level of financial freedom.
Prior to the decision, Tanvi Ratna, the CEO of Policy 4.0, conducted an analysis of the benefits that trading cryptocurrencies would bring to the economy. After a favorable decision is made, cryptocurrency trading allows traders to sit back in comfort and take advantage of an expanded economy.
It is safe to conclude that cryptocurrencies will stay here, and as long as the right security measures are in place to ensure no one is bypassing the system for their own gain, everything will run smoothly.
Disclaimer: The opinions expressed in this article are the personal opinions of the author and do not reflect the views of Connected to India. The company’s management assumes no responsibility or liability for the item.