Bitcoin is a tricky thing. It is completely decentralised. There is no central authority. It is highly volatile at the moment.Government cannot track the moment of money via Bitcoin.
Apart from security concerns, Govt. has to take care of an individual’s personal privacy and security. As an individual, people do not take their digital privacy and security seriously. Our emails are full of spam and phishing mails. Most of the mobile devices and computers would be infected with malwares. If any of these malware got aware of your involvement with Bitcoin, they can hack into your account and transfer Bitcoins.
My friends told me that there are entertainment apps in your mobile, who would even keep track of your messages. Copying someone’s OTP is a child’s play for them.
These are some of the reasons legalising Bitcoins is not easy in India.
Still GOI understands, its better to regulate a currency than let it develop an underground market. Bitcoin has its own set of features.
Bitcoin is permissionless.
It is fast and cheap to use.
It works 24*7.
You can send money to anyone anywhere.
No more any bank can deny you accounts, cards or transactions
People have started to realised it. They are accepting payments in Bitcoins. People are recharging their mobile phones, paying their electricity bills via Bitcoins. Because you can do it.
Government cannot stop this behaviour. They can moderate it. Its better to regulate it than let it flourish without any government control. I think Government will legalise Bitcoins after it studies how it can protect people from scams and phishing schemes.
