What if India bans circulation of cryptocurrency? What does the founder of Zerodha say

Zerodha Co-Founder Nikhil Kamathi took to Twitter to ask what would happen to the cryptocurrencies in circulation if the government decides to ban it.

“Is the Indian government banning crypto? What happens to everything that’s already going on?” The Zerodha co-founder tweeted.

Nikhil Kamath recently took to Twitter to express some of his doubts on cryptocurrencies.

“The problem with bitcoin is that there are 1,000 different identical coins. If one can create a currency, what’s the point of a currency. 100 years ago if 20 of my 100 neighbors started their own currency, I would have a currency for myself. Will take the side of the most powerful, that is, the government,” Kamath had tweeted on November 16.

He also mentioned that he was “no expert here, would like to learn more”, and invited relevant arguments and information.

What if the government decides to ban cryptocurrencies?

Well, if the government decides to ban crypto, then transactions between the bank and your crypto exchanges will stop. You will not be able to convert your local currency to buy any crypto. Plus, you won’t be able to redeem them.

Currently, there is no regulation or any restriction on the use of cryptocurrencies in the country. Notably, in recent times there has been an increasing number of advertisements featuring movie stars, promising easy and high returns on investment in cryptocurrencies.

Prime Minister Narendra Modi had a meeting last week cryptocurrency There are further indications with senior officials that stronger regulatory steps could be taken to tackle the issue.

RBI has repeatedly reiterated its strong views against cryptocurrencies, stating that they pose a serious threat to the country’s macroeconomic and financial stability and the number of investors trading on them as well as their claimed Doubt the market value as well.

Cryptocurrency and Regulation of Official Digital Currency Bill, 2021

The bill seeks to “create a facilitating framework for the creation of an official digital currency to be issued by the Reserve Bank of India”. The bill also seeks to ban all private cryptocurrencies in India, but it allows certain exceptions to promote the underlying technology of cryptocurrencies and its use.

Bitcoin

Originally started with bitcoin in 2008, there are currently hundreds of cryptocurrencies being traded on private exchanges internationally, including in India. Because of its stratospheric rise, bitcoin is considered the best investment of the last decade. Originally priced at around 10 percent, the coin was being traded at over $60,000 as of last week.