Published: 16 June 2021 03:12 AM:
Updated: 16 June 2021 06:03 am
The most popular of the virtual currency ‘Bitcoin’, better known as cryptocurrency, the world’s first L.A. Salvador Being legally recognized in the country means that such new money transfers can no longer be regulated. Lee Salvador It is expected that this bold decision of President Nayib Bukkle will boost investment opportunities and tourism in the country and its economic benefits will reach all Salvadorans. It is expected that the central banks of other countries that are leading the economy may later relax restrictions on the virtual currency. Central banks are postponing decisions out of legitimate fear of losing their power to control the value of the domestic currency.
Virtual currency opportunities in India are also expected after the Supreme Court ruling that the circular banning virtual currency by the Reserve Bank was invalid. The Supreme Court quashed the circular on the ground that there is no legal restriction on virtual currency. Subsequently, the Reserve Bank has asked banks to monitor and regulate these currency transactions even if they do not come forward to give them legal recognition. It is also rumored that these transactions may soon be brought under the watch of organizations like SEBI. If virtual currency trading is brought under tax laws, it is likely to generate additional revenue for the state. It is estimated that 15 crore people in India would have invested in virtual currency and the total value of investment could be up to US$ 100 million.
The global reluctance towards virtual currencies did not end overnight. An important step was the lifting of the ban on advertising of virtual currencies by popular IT companies such as Google and Facebook. Facebook has introduced a virtual currency called ‘Deem’ which is pegged to the value of the US dollar currency. These decisions of global companies will certainly have an impact on India’s stand as well. Even before virtual currencies were legalized in India, the number of its users and the value of the currency being exchanged had increased greatly. As the value of virtual currencies increases exponentially, speculation can be controlled by legally recognizing and creating clear rules.