Q.3) As India finds itself at a crossroads of prohibition and regulation in its tryst with cryptocurrencies, globally, the inclination towards permissive regulation recognises the freedom of choice given to people. In light of this, examine the advantages and concerns with the cryptocurrencies and suggest the approach India should adopt towards the cryptocurrencies. (15 marks)

“Mentor’s Comments”

Mentor’s comment-
  • https://www.thehindu.com/opinion/op-ed/embracing-cryptocurrency/article34824894.ece
  • In the intro, mention that recently  El Salvador became the first country in the world to adopt bitcoin as legal tender.
  • In the body mention the issues with the cryptocurrencies such as use for illegal activities, lack of regulation, wide fluctuations in value, the threat of hacking etc. In the next part, mention the global trend towards adoption and using the potential of the new technology which call for balanced regulation instead of a ban.
  • Conclude by mentioning the need for global consensus on regulations instead of outright ban cryptocurrencies.
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