India is a developing nation, and its growth is continuously rising day by day. India is still not ready to adapt to the latest, and the most popular cryptocurrency is bitcoin. Yes, you have heard it right that India is going to ban the use of bitcoin. If it happens then, the consequences on India’s economy could prove to be more dreadful. The researchers have shown that making use of this fantastic digital currency is the best option for the development of the country, and India should not make the same mistake again of banning bitcoin.
People from different parts of the world are using bitcoin as it is an excellent cryptocurrency and offers so many advantages to its users. If you are still unclear about the statement, then you are suggested to access blockchain technology and go through the points that are mentioned below.
Have a look at the negative factors of bitcoin banning in India
The news of bitcoin ban is not official yet, but the 2019’s draft bill consists of the eerie which resembles the 1970’s control. It is stated that it would completely ban the ownership, mining, buying and selling, as well as transferring of bitcoins. The people who may offend this rule will have to suffer 10 years of prison in jail, and they will also be charged fines for breaking the law. But the thing is that such a kind of prohibition will be a foolish decision on many levels. It is also a fact that the enforcement of this law is not as easy to do as it seems like. This is because the government cannot seize the bitcoins because they don’t even have the technology for even accessing the computer networks on which the bitcoins are operated. It is really a very hard task to get to know about the bitcoin which are held by the people in India.
For enforcing this ban, the authorities will need to develop some kind of system like intrusive inspection which can help in tracking all the digital activities which are held in the entire nation. But at present, India doesn’t have the potential and capacity of achieving this. In addition to it, the efforts of banning bitcoin will only lead to the bitcoin market underground. The potential young hackers will face some harsh raids if bitcoin gets banned in the country.
Evasion of tax will not be inscribed
There is no doubt in the fact that the ordinary Indian people would be underprivileged of the fantastic benefits of bitcoin. The ban on bitcoin will prevent Indian citizens from investing their money in bitcoin, which the researchers have called a huge mistake. The one thing that you need to know about India is that it receives excessive incursion of the world’s remittances, and by using the bitcoins cryptocurrency, they can save themselves from paying transfer fees.
On the other hand, the Indians who have options will run away from the country with their prosperity and the innovations along with them. But the reality is that any of these things will not help in addressing the real threat of the government that is tax evasion. Bitcoin is really very difficult to track, so most people will hide their income from government authorities by investing in bitcoin and will exploit the rule. The Indian government needs to know that the much better solution is to expand the tax assessment, make their implementation less discretional and also streamline the complicated tax code of India. This will encourage the citizens of India to pay for what they have.
What is the long-term solution?
The government of India worries about prohibiting the capital flight along with inconsistency during the time of economic crisis. Bitcoin will help the Indians for bypassing the restrictions on accommodation of capital account, and then they can easily invest their money in foreign countries. The best and the imperishable solution for Indian government is to reduce the command on the capital mobility. They need to make India one of the most desirable destinations for investing money.
Rather than banning bitcoins, the Indian ministry should focus on the restrictions which it has imposed on monetary dealings and institutionalize them with continuously changing world. The amazing fact is that liberalization which was done in the year 1991 has made India the global leader in the IT sector, so like that, if it opens up further, then the Indians would be at the position which they deserve.