If you know anything about commodities in the context of finance, than you should know that they are not the same thing as traditional currencies.
By definition, a commodity is a raw material or agricultural product that can be bought and sold on physical exchanges, like the Chicago Mercantile Exchange, or digital exchanges, which are currently on the horizon.
Therefore, it can also be said that they are not the same thing as digital currencies either.
As of July 11, a report was released by Quartz, which is a news website owned by Atlantic Media, that indicated that India has flipped its stance on banning Cryptocurrencies. As of now, they are considering regulating them in the same way as commodities are currently regulated.
Inside of this report, statements were made by Indian government officials to the effect the major goal of the committee assigned to the subject is to better track the movement of Cryptocurrency funds in order to combat illegal activities like money laundering.
Related to this, the same officials seemingly also made statements to the effect that the trade of Cryptocurrencies is not illegal at its core, it only needs to be watched over in a better way to prevent more widespread criminal acts in the space.
The Reserve Bank of India, which is the same entity that initially tried to spearhead the effort to ban Cryptocurrencies in the country, added their opinion to the same Quartz piece.
Reportedly, they believe that if Cryptocurrencies are labeled as commodities, then consumers will be encouraged to reject the idea that they can be the same as traditional currencies.
Even so, the RBI does not seem so sure that this is the case and left room for doubt with ideas like when Cryptocurrencies are used to settle transactions, they could actually be treated in the same way as traditional currencies.
In response to the government’s efforts, Crypto firms in the country are supposedly agreeing to just about anything to show that they are willing to adapt to impending regulation.
Only time will tell whether the government is willing to recognize their willingness to change and resist regulating the space in a detrimental fashion.
By: BGN Editorial Staff