Public cryptocurrencies and Private cryptocurrencies
There is a lot of speculation about public cryptocurrency and private cryptocurrency in India ever since people came to know that the government is going to introduce a crypto bill in the parliament on November 29. What I understand that the bill aims to bring two things – (1) A framwork for creation of the official digital currency which will be issued by RBI (2) To ban the use of private cryptocurrencies. The word “private cryptocurrencies” is creating a lot of confusion among investors and stake holders because the government hasn’t yet defined it. Everyone is trying to define public and private cryptocurrencies in their own way.
The complete information of this bill has not been shared with the public. Therefore investors’ concentration has shifted to public and private cryptocurrencies. Some say that along with all coins, bitcoin and ethereum will be treated as private cryptocurrencies. While some people say that Bitcoin and Ethereum are built on public blockchain. Their transactions are visible to the public except the name of the coin holders. Hence they should not be counted as private cryptocurrencies.
At present, a lot of discussions about this crypto bill are going on in the media. You will find many articles and videos in the internet which only discuss about this crypto bill. Yet people are not able to understand which coins the government is referring to as private cryptocurrencies.
Many questions are emerging in the minds of the people, such as whether this bill will regulate or ban cryptocurrency. What will investors do if it is banned? Who will regulate cryptocurrency if it is allowed to use? In India the banking system is regulated by the Reserve Bank of India (RBI) and stock exchanges are regulated by the Securities and Exchange Board of India (SEBI).
Yesterday, I watched several news debates on the crypto bill so that I can understand the intention of the government. Since the whole content of the bill is not public yet, it is difficult to guess anything. However investors are taking it as a positive steps by the government because they also want regulation for crypto industry. India has over 20 millions crypto investors who invested their money in cryptocurrencies. Probably over 5 crypto exchanges are operating in India . They have created employment and investment opportunities. So everyone is hoping that the government will think about this industry. However the picture will be clear on or after November, 29. Till then we should wait and watch.
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