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How much impact does cryptocurrencies have on the Indian Economy?

Feb 25, 2018 Posted /  4525 Views

How much impact does cryptocurrencies have on the Indian Economy?

From past few years, the word cryptocurrency has speedily achieved visibility in the public interest. In today's period, digital currencies are quick and becoming crucial to people for those who give importance to privacy, as well as for whom the initiative of using cryptography to have power over the conception plus distribution of money does not sound too implausible.
Today, cryptocurrencies are making a vivid impression on the economic world as many people are investing as well as buying these currencies. Simultaneously there is still prevalent bewilderment plus partiality which draws back to the general efficiency of Cryptocurrency.

Why bring cryptocurrency into play?

Bitcoin, by far is the most admired cryptocurrency which has become a sensation. There are many other cryptocurrencies such as Litecoin, Ripple etc. for the people to carry out transactions. But for each victorious cryptocurrency, there are others which are expired since no one bothered to make use of them, as well as a cryptocurrency, is only as powerful as its users. Some of the prominent features of Cryptocurrency are-
•    It can be transformed into other forms of currency plus deposited into user's accounts at a great speed
•    Most Cryptocurrency transactions can be performed in secret, plus can be used as judicious online cash at any place in the world.
•    While they are not completely immune from burglary, they are usually secure to use as well as complicated for wicked hackers to crack.

Impact of Cryptocurrency in India

The impact is obviously noticeable as the prices of all altcoins as well as the cryptocurrency market are now moving to the ground. Now the issue which comes up is why the government is doing all this? What's wrong in permitting people to continue trading with cryptocurrencies?
Well, the government has plainly said a few years back that it is not a lawful tender which means it can’t be utilized for any sale or purchase of the product. But looking at the present day's statement by the finance minister it is an imperative hint. He has clearly said that they like Blockchain technology as well as they will think about it for the future use but its derivative cryptocurrency trading will be discouraged. This means they will seek to put a lot of blockade until the time you stop trading it.
The main motive is for the reason that decentralized transactions in form of cryptocurrencies are difficult to trace as well as the criminals plus even the terrorists can utilize this. Another motive can be that it can become the leading rival of Banks furthermore India being the service sector driven economy, and if such a cryptocurrency system comes in, then the government can’t depend on this, that is why banks don’t want it to exist.

Some challenges for the Cryptocurrencies

The demonetization policy of 2016 may have encouraged the implementation of cryptocurrencies amongst a substantial share of the population but realities rapidly began to come out that have subdued the growth of the market in the country. In spite of its enormous population, India only contributes two percent of the whole global cryptocurrency market capitalization. Though the government of the country hasn’t prohibited cryptocurrencies, they haven’t precisely been supporting it. Of late a debate has come into view within the country as to whether gains from cryptocurrency transactions should be taxed or not. The upcoming months will divulge the way in which the cryptocurrency market will progress to the extent that India is concerned.

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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Tags: Cryptocurrencies Indian Economy cryptocurrencies in India

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