Crypto-currency, especially Bitcoin is such a promising form of digital asset that is finely arranged on a safe and secured digital network with the best part that it booms with a perpetual upward trend, so much so that its current value is established at $48000 just day before yesterday, which falls around Rs. 20 lacs, in INR.
Sans doubt, giant corporate players in the world have given a great fillip to crypto-currencies, namely Bitcoin while Tesla made a declaration to invest $1.5 billion in Bitcoin just in precious week. Moreover, tectonic shift was caused in digital payment world last week, when Elon Musk of Tesla declared to start accepting payment in Bitcoins for its EVs in America.
Though, from Indian perspective, using crypto-currency in any form of financial operations remains next to impossible as this is banned. In fact, “official digital currency” is on cards from Indian government as draft of a new legislation is prepared à Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, which declares the bunch of private cryptocurrencies as unlawful. The RBI had placed a final nail in its coffin in 2018 but apex court of India stepped in to overturn the decision in March 2020. Besides, efforts were on in 2019 to prepare another bill which would have banned cryptocurrency and dealing in it would have attracted legal proceeding in India, but the bill somehow remained, incomplete. But this time around, a fresh bill is under discussion, following Inter-Ministerial Committee (IMC) chaired by Secretary Department of Economic Affairs which analyses the nuances of virtual currencies and has made strict recommendations in its report to declare all forms of private cryptocurrencies null and void while only state-issued cryptocurrency to enjoy the validity.
Just on February 09, Finance Ministry issued a statement in Rajya Sabha that conveyed, “that it would take a decision on the recommendations of the IMC and the legislative proposal, if any, would be introduced in Parliament following the due process”.
Now, let’s bring in here, Mr. Raj Dhamodharan, VP Digital Assets & Blockchain Products & Partnerships at Mastercard, who channelized his views on the topic, in his blogpost, “Whatever your opinions on Cryptocurrencies—from a dyed-in-wool fanatic to utter skeptic—the fact remains that these digital assets are becoming a more important part of the payments world. We are seeing this fact play out on the Mastercard network, with people using cards to buy crypto assets, especially during Bitcoin’s recent surge in value. We are also seeing users increasingly take advantage of crypto cards to access these assets and convert them to traditional currencies for spending”.
Mr. Raj made the intentions of Mastercard loud and clear that the company would extend support to certain cryptocurrencies on its secured network from this year onwards. He also notified that only a handful of them and not all and every type of cryptocurrency would enjoy the special advantage on their network.
Crypto-Fever in West:
Looking west, even Twitter Inc contemplates Bitcoin in expanding its company reserve, joining the bandwagon which has BNY Mellon, Mastercard and Tesla. Determining this, company’s Chief Financial Officer Mr. Ned Segal stated in a report published in CNBC, “We have done a lot of the upfront thinking to consider how we might pay employees should they ask to be paid in Bitcoin, how we might pay a vendor if they asked to be paid in Bitcoin and whether we need to have Bitcoin on our balance sheet”.
Interestingly, Jack Dorsey who founded Twitter and set up Square, which is a financial services and mobile payment firm, is considered to be third in place, when we check largest corporate holding of Bitcoin, MicroStrategy and Tesla are first and second respectively.
Sharing the similar booming spirit, Bank of New York Mellon has also stepped forward to declare that just like other conventional financial assets, financing options for cryptocurrencies especially Bitcoin will be started soon. Mr. Roman Regelman, working as chief executive of the bank’s asset-servicing and digital businesses, disclosed to Wall Street Journal, “Pending further evaluations and approvals, we expect to begin offering these innovative and industry-shaping capabilities later this year”. He went on to add, ‘Digital assets are becoming a part of the mainstream”.
Well, dear readers, as for India, let’s keep fingers crossed and wait for our very own network currency to unroll, which would be safer to deal with alongside super valid.