Why Arun Jaitley is completely mistaken about cryptocurrencies
Finance Minister Arun Jaitley denounced the use of cryptocurrenies in his budget speech. At the same time, he put emphasis on using blockchain for efficiency and avoiding leakages. Even though it states government's stand about the currencies like bitcoins, it would be hard for the government to completely block the use of such currencies. The problem is that bitcoins and other currencies are in circulation on the web and not termed illegal by many other countries. In our opinion, the government's decision to stop the use of cryptocurrencies in India is completely wrong.
Instead of this, the government would have introduced a mechanism to limit the use and track them. It would help the government to create an ecosystem for players in the domain and then force people to pay tax.
In the US, bitcoins can be used. It stops India from barring people from buying or using them. There are other countries where ICOs are piling up. And they are innovative in nature. They are simply not currencies. They are much more than that. They are enabling the startup culture.
In our opinion, the government should seriously rethink over its decision and create a framework around bitcoins or other crytocurrencies. The US has been constantly making efforts to bring transparency and law-enforcement around them.