India wants to make Bitcoin a legal tender

Cryptocurrencies have found massive acceptance worldwide and are solving problems, especially in the financial sector.

Cryptocurrency is currently a topic of discussion in India due to regulatory uncertainties. The government intends to introduce stricter laws for crypto trading investments and said it does not intend to make Bitcoin a legal tender.

Ashish Singhal, co-chairman of the Blockchain and Crypto Assets Council (BACC) and founder and CEO of CoinSwitch Kuber, told the Indian Express that the crypto space does not call for Bitcoin as legal tender. He explained:

“First of all, exchanges and crypto companies never expected India to introduce cryptocurrencies as legal tender. As a sovereign country, India should have capital controls and financial stability. For countries with instability, it makes sense, but for India, it makes no sense to give control to a cryptocurrency.“

Singhal added that the cryptocurrency space is on the side of the government. He believes that a central bank digital currency (CBDC) is crucial for solving the problem of digitization. With CBDC, money can become digital, he added.

The CEO of CoinSwitch Kuber argued that cryptocurrencies could best be described as an asset class and not as legal tender. He added:

“The next Google, Facebook and Microsoft will be built on blockchain and hopefully come from India. So the scope of its application is much wider. The new Internet is in the making and it’s not just about trading a commodity. Trading takes place due to its use case.“

Cryptocurrencies have found massive acceptance worldwide. Most experts consider them to be assets, and not currencies. Cryptos have different use cases in both the real and virtual world. Singhal said that cryptocurrency exchanges are crucial for the functioning of the crypto market, and their role will only increase in the coming years.

He compared crypto exchanges to stock exchanges and added that while the best use cases of crypto might be smaller, these use cases would be solved amazingly. Singhal stressed that there are many real problems that cryptocurrencies and blockchain technology solve, and the trend will become even stronger in the coming years.

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