With Bitcoin’s breath-taking popularity all over the world in the past couple of months, the government was expected to provide clarity on cryptocurrencies. India’s Finance Minister Arun Jaitley has stated in his Budget speech that,” The currency is illegal and the government was not going to recognize it. The ever-increasing liking for bitcoin- a cryptocurrency which has rocketed to shocking highs, has already come under the radar of the government. Bitcoin may be an easy method To evade taxes or traps, unsuspecting small investors in Ponzi schemes.
The government has already started to take measures to track/stop the illegal use of this unregulated virtual currency. However, Jaitley has announced that the authorities will embrace blockchain, the technology which supports cryptocurrencies. The Reserve Bank of India already leans forward taking a look at the new age of cryptocurrency. The Bitcoin’s expansion may have encouraged the central bank to think about its cryptocurrency since it is uncomfortable with this non-fiat cryptocurrency which will grow to be an alternative to the Indian rupee for digital transactions. A group of specialists at RBI is examining the opportunity of a fiat cryptocurrency that will develop into a substitute for the rupee for digital transactions. RBI’s cryptocurrency may be a part of producing its Blockchain, a dispersed digital ledger, and technology which supports cryptocurrencies. State Bank of India has taken the lead to attract lenders and technology firms together for using Blockchain technology to share information among banks which will ultimately help in preventing scams and manage bad loans which are almost 1 5th of banks loan publication. The SBI initiative, also known as Bank series, is now in partnership with IBM, Microsoft, Skylark, KPMG, and 10 commercials banks.