Q.1)There is a detailed need for RBI to formulate a detailed policy framework for regulation of cryptocurrencies. Discuss.
Why this Question:
Cryptocurrencies have been in the news for a long time.
Key demand of the question:
Benefits and challenges of use of cryptocurrencies and need for regulating its usage.
Discuss- back up the answer by carefully selected evidence to make a case for and against an argument, or point out the advantages and disadvantages of the given context and finally arrive at a conclusion.
Introduce by defining cryptocurrencies and giving the SC judgement that lifted the ban on them by the RBI.
In the first part, highlight the benefits that the cryptocurrencies can have in different sectors.
In the next part, highlight the need for regulating it due to the various challenges that it poses as it is a virtual mode of currency.
Concluding by mentioning various solutions as a complete ban on anything that is slowly being used worldwide is not the appropriate solution.