Hyderabad: Swadeshi Jagaran Manch has urged the central government to put a ban on buying, selling and investment on cryptocurrencies in the country. According to them, the digital currency is not an underlying asset as the issuer is not identifiable.
Recently, the government has announced the introduction of 'Cryptocurrency and Government Digital Currency Bill 2021' which aims to ban private cryptocurrencies. However, the government has also indicated to give some relaxation to encourage the technology underneath these cryptocurrencies and it has plans to issue digital currency through Reserve Bank of India. Both the government and Reserve Bank of India have been in favour of restricting trading in cryptos.
However, the Supreme Court gave verdict that since the government has not banned cryptocurrencies legally, it’s not within the right of RBI to issue instructions to banks, to not deal with cryptos. It is estimated that about 20 million people have put their money in cryptocurrencies, said the cultural and economical organisation, affiliated to Rashtriya Swayamsevak Sangh.
However, the Swadeshi Jagaran Manch argues that currency means an instrument issued by the central bank and guaranteed by the government. While, crypto is being used by criminals, terrorists, smugglers and persons involved in hawala. Another major argument against crypto is that its mining consumes huge amount of electricity, which can lead to power shortages. This is one of the biggest arguments China has made in banning crypto.
Besides, the organisation says that recognition of cryptocurrency may lead to heavy speculation which may in term adversely impact financial market and also result in money laundering and terror financing. It also wants the government not to link Block chain technology with crypto currencies.
Law relating to issuance of digital currency by Reserve Bank of India should be framed quickly, as people, mostly youth, of cities and even villages are getting attracted towards it. The outfit also wanted Ministry of Consumer Affairs and Ministry of Corporate Affairs to launch an aggressive awareness campaign so that people won't fall prey to deceptive advertisements.
