Cryptocurrency is a threat to national economy

New Delhi: Cryptocurrency poses a threat to the country’s economy. Reserve Bank has openly stated its concerns regarding this. Union Finance Minister Nirmala Sitharaman said that citing the threats posed to the economic and financial stability, the Reserve Bank has demanded a ban on Cryptocurrency. The Finance Minister gave this striking information in the written answer to a question asked in the Lok Sabha.

Moreover, India has adopted an open stand against Cryptocurrency. The Reserve Bank had cautioned the population of the country regarding cryptocurrency transactions way back in 2018. There is no legal protection attached to Cryptocurrency transactions. Therefore, any kind of cheating is possible in these transactions. The Union Finance Minister warned there is no legal basis for Cryptocurrency in the written answer submitted in the Lok Sabha.

The Central Bank of the country is behind the currency of the country. But there is no formal agency behind Cryptocurrency. Saying that the transactions are based only on prediction and forecasts, the United Minister pointed out that there is no control over the return on investment. Sitharaman warned that this could affect the economic and financial stability of the country.

Despite this, if a country decides to take action to ban Cryptocurrency, it will not have much effect. The Union Finance Minister has said in the written answer that action can be taken against Cryptocurrency only if all the countries make a joint effort. Meanwhile, Prime Minister Narendra Modi also cited the threats posed by Cryptocurrency during an international conference and appealed to the democratic countries of the world to unite against Cryptocurrency. During the conference, Prime Minister said that Cryptocurrency can be used for illegal activities and poses a threat to the youth in democratic countries.

India has consistently adopted a stand against Cryptocurrency. The Union Finance Minister pointed to the threats posed by Cryptocurrency to the national economy against the background of the upheavals caused by the Ukraine conflict and the fuel price rise became significant. It is claimed that huge investments are being made even from India with the hope of higher returns. There is no information on the official level as to what are these amounts. But some news agencies claim that the country’s youth is greatly attracted to Cryptocurrency.