As the regulatory uncertainty continues to linger over cryptocurrency in India, Zerodha co-founder Nikhil Kamath took to Twitter to ask netizens what the next decade may hold for the virtual currencies.
"I think the next decade is going to see a serious inverse correlation trade between gold and crypto, people could buy gold to short crypto and vice versa, thoughts?" Kamath tweeted.
His comments come at a time when the government is considering bringing the Bill on cryptocurrency regulation in the ongoing winter session of the Parliament, which may ban all such private currencies in the country.
However, with the Union Cabinet not taking the Bill for consideration on Wednesday and the Winter Session of Parliament ending on December 23, the chances of it being tabled in the House look bleak.
The bill, which was listed in the government's legislative business of the winter session, seeks to "create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India".
It also seeks to prohibit all private cryptocurrencies in India. However, it "allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses", according to the bill listed for introduction on the Lok Sabha website.
Currently, there is no regulation or any ban on the use of cryptocurrencies in the country.
Against this backdrop, Prime Minister Narendra Modi, last month, held a meeting on cryptocurrencies with senior officials, and indications are that strong regulatory steps could be taken to deal with the issue.
There have been a rising number of advertisements, featuring even film stars, promising easy and high returns on investments in cryptocurrencies in recent times, amid concerns over such currencies being allegedly used for luring investors with misleading claims.
The Parliamentary Standing Committee on Finance, chaired by BJP member Jayant Sinha, had also met the representatives of crypto exchanges, blockchain and Crypto Assets Council (BACC), among others, and arrived at a conclusion that cryptocurrencies should not be banned but should be regulated.
The RBI has repeatedly reiterated its strong views against cryptocurrencies, saying they pose serious threats to the macroeconomic and financial stability of the country and also doubted the number of investors trading on them and their claimed market value.
RBI Governor Shaktikanta Das too had earlier this month had reiterated his views against allowing cryptocurrencies, saying they are a serious threat to any financial system since they are unregulated by central banks.
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