India is a big country and the world cannot dictate how to run its operation. It has its independent policies and procedures. That is why Government always makes policies to deter foreign factors involved in the country. The economy of the country largely depends on internal resources to generate income. The basic and advanced structure in the country is also in the good condition to support the Government policies for the betterment of the people.
As said India is a big country and huge economy. That is why every company wants to reap the benefit. Cryptocurrencies are a new phenomenon in today’s world. The rise of Bitcoin has attracted the whole world and everyone is trying to climb the running train. But unfortunately, the Government of India has banned all the Cryptos in the country. This is a matter of serious concern to cryptocurrency companies all over the world.
Crypto exists in the form of digital assets. Ownership is stored in a computerized database as a ledger coin. This database is secured one and every transfer of the coin is recorded in it. Unlike paper money, it does not exist physically and is not issued by the central bank of the country. This is the reason, it is operating under decentralized control and the Government of India bans the cryptos.
In India, all transactions are performed via the banking system. To document every transaction, the Government of India launched the Aadhar system in the whole country. Aadhar number – a 12 digit unique which is issued by UIDAI (Unique Identification Authority of India) is used to document the entire transaction. That is the reason, UIDAI has issued Aadhar cards to almost 90% population of the country and around 88% of banking accounts are linked with Aadhar numbers.
As Cryptos is not controlled by a central authority, it is not possible to link this with the Aadhar number in India. Of course, Government cannot control the whole transaction as there is no centralized mechanism exist inside the country. Another reason which experts believe that there is already a mobile number system connected with Aadhar number. So, this already provides a platform for the Government to launch its very own independent digital currency setup. This will be a secure system and will not be dependent upon the policies of foreign factors. As the system will be launched by the Government, it would have more trust and authenticity than any other cryptos.
The Government’s intention to launch a digital rupee can be judged from the fact that the Reserve bank of India has allowed retail investors to open an account directly e-Kuber. This allows them to purchase the Government’s bonds in both the markets of primary and secondary securities. RBI official BP Kanungo who is the Deputy Governor also confirmed that an internal panel in the central bank is working towards the model of the digital currency.