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Explain Crypto as legal tender in India.

A cryptocurrency is a tradable digital asset or digital form of money. It is not a legal tender but used increasingly across the world. Many countries are planning to adopt Cryptocurrency as legal tender in order to boost their domestic economy.

Potential benefits of Cryptocurrency

  • Unaffected by inflation
    Cryptocurrency is not affected by inflation. The purchasing power of Cryptocurrency is unaffected by global situations or economic crisis.
  • Non government control
    The government does not exert control over Cryptocurrency assets. This allows users to ensure privacy to their financial transactions.
  • Overcome embargo
    Many countries have been imposed with financial sanctions, which cuts them off from traditional banking. Cryptocurrency helps them to circumvent the sanctions.

Challenges with Cryptocurrency

  • Internet access
    Continuous access to internet is a necessity to use Cryptocurrency.For that, government has to develop internet infrastructure and help in digital penetration.
  • Misuse for crimes
    Cryptocurrency can be used to launder money and avoid taxation. Terror funding and bribing can get blanket protection due to secrecy.

Thus, Cryptocurrency may be the currency for future but there are still issues that need to be negotiated for popularizing and adopting it widely.

Read More - https://blog.ipleaders.in/is-bitcoin-legal-in-india/







POSTED ON 03-06-2022 BY ADMIN
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