28 FEB,2021 | MEDC
The RBI has expressed to the government its concerns about cryptocurrencies and why they should not be legalized. It has a valid point. It is not that there is something intrinsically unsafe about the underlying technology … but more about how people are handling and managing it. There still remain some real risks to economic recovery from Covid, and we cannot afford to have adventurous speculators dabbling in volatile and risky investments. At the same time, we should not throw the baby out with the bathwater. Thus, the RBI Governor has aptly said that blockchain technology should be exploited, but cryptocurrencies should be approached cautiously. As it is, India has only limited success in controlling all kinds of cyberterrorism, and legalizing cryptocurrencies will add further to our financial complications. The government plans to introduce a bill in the lower house that would ban private cryptocurrencies like bitcoin and create a national digital currency. That would be a step in the right direction.
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