El Salvador Adopts Bitcoin as Legal Tender: What’s India Thinking?

Chandra believes that when a sovereign nation recognises Bitcoin as a authorized tender, nations throughout the globe together with India must take cognisance of the inevitable disruption within the realm of financial and financial spheres .

According to a World Bank Report, India obtained 83 billion USD in 2020. “With a significant Indian diaspora across the globe and the global heft the country has, India should not shy away from embracing digital currencies to lower cost of remittances and ensure real-time cross border payments”, Chandra stated.

As a member of G20, India has to decide to the broader mandate to convey transparency and affordability to cross border funds together with remittances.

In India, there’s a consensus within the blockchain and crypto neighborhood to “classify Bitcoin and other digital currencies as an “Asset” class and apply taxation rules accordingly. It wouldn’t be prudent to apply the El Salvador model in the Indian context”, Chandra defined.

However, the function of distributed ledger know-how and digital currencies in eradicating friction in remittances , cross border commerce and MSME finance shouldn’t be ignored. In order to attain the objective of a 5 trillion greenback economic system by 2025, India wants to deal with the financing hole of 250-500 billion USD for small and medium sector enterprises.

A prime official on the situation of anonymity advised The Quint that the Indian authorities will not take into account accepting Bitcoin as a authorized tender as a result of acceptance may have an effect on the place of Indian rupee.

But some studies recommend India could recognise Bitcoin as an asset class.

Additionally, Ketan Surana, Director and chief monetary officer, Coinsbit, and Member, Internet and Mobile Association of India stated, “We can definitely say that the new committee which is working on cryptocurrencies is very optimistic on cryptocurrency regulation and legislation… A new draft proposal will soon be in the Cabinet, which will look into the overall scenario and take the best step forward. We are very hopeful that the government will embrace cryptocurrencies and blockchain technologies”, reported The New Indian Express.

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