The assembly of Salvador, a coastal country in Central America, has taken a revolutionary step and declared Bitcoin a legal tender for general use. Voting on the bill in the ELSalvador assembly received 62 out of 84 votes in favor of the Bitcoin bill and the bill instantly passed.
Salvador, which declared bitcoin a legal tender, is now the first country to do so. For the records, financial matters in EL Salvador are still under the Federal Bank of America, but this country has the freedom to make its own decisions. This country believes that the control of the Central Bank can harm the economic policies of their country.
Therefore, EL Salvador believes that a financial structure needed where the control of currency is not in anyone in particular’ hands and the supply should be in limit like Bitcoin.
It has yet to be seen how this country now starts using bitcoin in its country! If this country sets bitcoin as a role model for transactions, then probably it will be easy for the other countries too. However, the fluctuations in the price of bitcoin and transaction fees could become a major problem.
And if the present ups and downs in the price of Bitcoin and its functioning system go on, this might increase the problem in the future for this country. So, for the time being, everything is under observation and needs a close watch on the whole scenario.
After giving legal tender status to bitcoin in ELSalvador, the news spread in Indian newspapers that soon the Indian government can also recognize Bitcoin and crypto in the country. But the fact is there is no reality in this news or similar videos that started appearing on YouTube soon after.
India is different from rest of the world
Crypto investors right now seem even more confused in India to trade or not to trade especially after ED sent a notice to major Crypto-Platform. Bringing a bill on crypto in India is not as easy as ELSalvador, because the political structure here differs from ELSalvador.
In India, the difference between the number of parliamentarians in the two houses and the way Indian politics/politicians work makes it almost impossible to take a decision on anything. There are too many political parties here and it is very difficult to get bring them together on any subject.
Worst of all, there is a lack of coordination on policy matters even in the government sectors/departments. The Reserve Bank of India here is not positive about crypto therefore keeps issuing advisories to public/private sector banks despite a clear guideline from the Supreme Court of India not to interfere with crypto related decisions since there is no ban on crypto trading in India.
There are too many questions here about crypto-related matters. I am not sure on what basis the newspapers writing that SEBI will control this issue! Or how the Indian government is looking at bitcoin and crypto and what will be the law on it or what will be the rules and laws for its transactions. Nothing has been decided yet but everyone is busy in speculation and spreading their personal views in the name of crypto policies.
The so-called experts
I believe the newspaper and so-called crypto experts are doing all this to stay in news and sell themselves in the name of bitcoin and crypto. This is not a big issue to make a law on cryptocurrency in India and soon the government can take a decision on it, but the lack of willpower and infighting between the political parties is keeping the Indian government to take yet another controversial issue.
But I believe that decision taken by ELSalvador, a law on crypto in India has no relation but merely their lack of knowledge, carelessness and mentality to create a sensation on everything by the media is behind all this. Besides, the media and some political parties have said so much that the views of the Indian public about crypto are not positive. In fact, you can say anything by writing a few words posing yourself as an “I know it all” and this is what our media experts are doing.
Laws and regulations on crypto in India will take time to be formed and there are many reasons for this. The lawmakers themselves have little knowledge about this and the knowledge of the members of the committees being formed on this vital issue is negligible on this highly technical subject.
An organization like SEBI will also have to do a lot of work on this subject because the crypto market is entirely different from the stock market. The tax department will also take time to make rules on crypto. India’s politics is also such that elections that held here every month and in such a situation, what one government does today might get rejected by incoming governments.
I am confident about a positive result will come in favor of crypto and law will come in favor of the crypto community, but it may take time. We, the crypto community, can only pray that our government reaches a decision only after taking all the right information and facts that go in favor of investors and keep our interests safe.
