Tax Crypto, Release Ban oh! Government

Hello Government ! Please regulate cryptocurrency and make arrangements for Nepali to stay in Nepal by levying 30% tax like India! Otherwise, the Nepalese will go to the Gulf, India and other countries and pay taxes to that country. If you want to change the face of the country now, implement crypto and blockchain system. If you do not have the knowledge, hire a team of experts on how to regulate. Why is the government spending the country's coffers by forming a team to execute the poor who have made a living using crypto-technology?

How did the world get from paper money to cryptocurrency? To understand this we have to turn the pages of history. Money has been invented to facilitate human life by replacing the barter system. Coins and precious metals were used in the early days of currency. The circulation of paper notes is found to be prevalent after the circulation of coins became impractical.

Among the various forms of currency are coins, paper notes and debit / credit cards also known as plastic currency. Currently, the use, importance and interest of digital currency to replace plastic currency seems to be increasing.

So let's look back at the history of money. Looking at the history of paper money, it can be seen that paper notes were introduced by Kublai Khan in China around 13th century. Which was taken as a state tender as well as legal tender. Looking at the history of plastic currency, it became popular around the world around 1966 when Visa and MasterCard started issuing debit / credit cards. Its use has spread worldwide as it is easier and safer to carry than paper notes and can be paid in different currencies with one card and secure transactions can be done through PIN.

Digital currency is not physically visible and is used from the Internet instead of paper notes. It can be called Electronic Money (E-Money). It should also be recognized by the Central Monetary Authority. In China, for example, e-CNY (Electric Chinese Yuan) was released in 2020. E-Money has also started in Japan in 2021.

Thus, before going into the subject of currency, it is important to know about the function of currency. The functions of currency are as follows:

1. Medium of Exchange

2. Unit of Account to measure Economics Value

3. Store of Value

So what we can understand from this is that the use of the form of money that can do the above mentioned tasks easily and efficiently will obviously become popular overtime. Because in today's age of global village and global mobility, its use is determined by the user's psychology rather than the need for a currency regulatory body.

How is the use of money changing in our daily life?

Nowadays, if we sit in the restaurant with family, relatives and friends, the bill will come to our table to pay for it. Then we don't touch the wallet in our pocket nowadays but instead we open the apps in the mobile and the employee of the restaurant says bring QR Code, we scan or request to swap and transfer account from debit / credit card to POS machine. What we can understand from this is that now the society is moving towards digitalization.

What is Digital, Crypto / Virtual Currency?

Digital Currency - Controlled by the Central Bank or Monetary Authority. It's just an electronic currency. As the European Central Bank defines every digital currency as a virtual currency, the difference between digital and crypto virtual currency is recognized by the state.

Who controls the crypto currency and who mines it is unknown. This is a kind of digital Currency. Online Ledger is used to secure the purchase of goods and services via internet. Instead of going to the bank, it can be traded and collected from Distributed Ledger (Block Chain) at home. With Cryptographic Signature being a distributor in transaction record, register and block Chain, one can also buy or sell a mutual transaction between crypto currency holders.

Bitcoin is a form of Crypto Currency, but there are other investing Crypto Currencies like Bitcoin. Such as Cosmos (ATOM), Dogecoin (DOGE), Ethereum (ETH), Corm pound (COMP) Palk dot (DOT) etc. However, most countries in the world consider such currency transactions illegal. Nepal is one of them.

What is CBDC (Center Bank Digital Currency)?

CBDC is also known as Fiat Currency or Digital Base Currency. Such currency is issued in digital form by the State or State Controlled Central Bank as Electronic Currency on Block Chain Basis. Legal Tender The main feature of this currency is that it is legal tender which does not exist in case of crypto. The Bank for International Settlement (BIS) has also started a study along with 84 percent of central banks in the world thinking about CBDC idea. Among these, China launched Digital RMD in 2020, and Nigeria launched Digital Currency in 2021.

The following are some of the advantages and disadvantages of CBDC.

Benefits:

Technical efficiency

Low risk

Less complicated

Zero transaction fee

Financial inclusion

Tax collection

Financial security

Fights crime

Shows illegal activity

Disadvantages:

Banking system disintegration

Centralization

Difficulties in currency exchange between countries

Difficulties in money supply of the central economy

It is said that technology cannot be limited within any perimeter. Now that the world has entered into crypto culture and digital cash, it seems that regulation and control of the state and regulatory body is more important than controlling this momentum.

While the IMF, the European Central Bank, and Basel have acknowledged that there is no alternative to digital currency, China and Japan, the world's largest economies, have also issued the Central Bank Digital Currency (CBDC). Neighboring India recently announced that it would issue Central Bank Digital Currency (CBDC) through its central budget next year and impose 30 percent tax on assets earned from Cryptocurrency. By this declaration, India has given silent approval to crypto investments.

Various unofficial statistics have shown that cryptocurrency transactions are increasing day by day in Nepal as well. Singapore's crypto payment gateway 'Triple A' has recently released a new report on cryptocurrency users around the world. According to the report, 1.45 percent of the total population of Nepal has invested in cryptocurrency. The number of people investing in cryptocurrency in Nepal is around 424,000. It is also said that big businessmen and high ranking officials of Nepal have also invested in it. Therefore, the Government of Nepal and the regulatory body have to show interest and concern in this regard.

Technology is always like a double-edged sword. The society and the state can control the economy if it is properly utilized or controlled in time. Is it possible to be a part of the world economy without creating a technology-friendly environment? It is our obligation and justification to follow the changes that have taken place in the neighboring countries. Because of the open borders and the balance of payments in the inter-country trade between India and Nepal, the Central Bank Digital Currency (CBDC) seems indispensable.

Cryptocurrency: From its Start to End !

Let's delve into the A to Z of the cryptocurrency!

The word 'cryptocurrency' is a combination of two English words, 'crypto' meaning secret and 'currency' meaning money or currency. In the general sense, cryptocurrency is the secret currency. It is a 'virtual' currency that runs on the Internet.

It is a currency that is built on computer algorithms. It is a free currency with no owner and no monopoly. Unlike the rupee, dollar, euro or other currency, it is not governed by any state, country, institution or government. It is a digital currency for which cryptography is used. Generally, it can be used to buy goods or services.

Cryptocurrency profits are high, making it easier to transact online. Cryptocurrency has no regulatory body, so it is not affected by conditions such as a asset change or a currency devaluation. When Bitcoin was launched in 2009, its value was zero dollars. Even in 2010, its value did not reach even 1 dollar, but today the value of Bitcoin has reached more than 44 thousand dollars.

Types of cryptocurrencies

Bitcoin is one of the most popular cryptocurrencies in the world. There are hundreds of other cryptocurrencies in the world. Examples are Red Coin, Sia Coin, Sis Coin, Voice Coin, Etherium, Ripple, Lit Coin and Monero. 

What is Bitcoin?

Bitcoin is a cryptocurrency that has properties similar to other virtual currencies. It is a virtual currency that cannot be touched by one's own hands. It is transacted online from one wallet to another. It can also be converted into other currencies. Bitcoin came into circulation in 2009. It is believed to have been invented by Satoshi Nakamoto of Japan, although his name and identity are said to be fictional.

It exists only in the virtual world, the Internet. But, just as goods can be bought with physical currency, so also goods can be bought and sold with this currency. Its transactions are based on a peer-to-peer network. This means it can be transferred from one account to another without a server. All you need is an internet connection. Its value is the same all over the world. For example, the value of a bitcoin worldwide was $19,860 once upon a time.

The smallest currency of Bitcoin is Satoshi. 100 million satoshi is a bitcoin. Bitcoin can be purchased for any currency, goods or services. It is not controlled by any country, bank or authority.

It is risky to invest money in it. Many times its price has dropped by 40 to 50 percent in just a few hours. Most of the cryptocurrency is being used for illegal purposes.

How did Bitcoin get started?

It is said that Satoshi Nakamoto launched this software around 2009. It was initially used to play online games. After a while, it started to be used by people who earn money by working online.

They gradually started using such currency instead of paper notes and started accumulating bitcoin. Then the market demand increased and it became a global currency. Bitcoin is currently the most popular cryptocurrency in the world.

Some other popular currencies besides Bitcoin

Apart from this there are some other good cryptocurrencies available in the market. Here is a list of some of the most widely used ones today:

1. Red Coin: This is one of the crypto currencies that can be used for special occasions. It is used to give advice to people.

2. Sia Coin: It is also one of the most widely used coins today. It is on the rise now. The value of this coin is currently rising sharply.

3. Yes Coin: This is a revolutionary cryptocurrency. It is moving forward with zero cost financial transactions and incredible speed. It is being used to secure business, property and digital certificate data trading. It provides business with infrastructure construction. It works on blockchain which is a part of Bitcoin.

4. Voice Coin: This is a platform designed for emerging musicians where singers can determine the value of their music themselves. They can provide sample music tracks for free. The main purpose of this platform is to monetize independent artists.

5. Monero: This is a special type of cryptocurrency used for security. This is known as a 'ring signature'. It is mostly used in the dark wave and block market. It is widely used in the black web and block market. It is used for smuggling. This currency can be easily blackmailed.

The Benefits of Cryptocurrency

Anything has its pros and cons. Cryptocurrency also has its advantages and disadvantages. Its disadvantages are less and its advantages are more.

1. Cryptocurrency is a digital currency with very few fraud cases.

2. It is beneficial to invest in cryptocurrency if you have more money as its value increases very fast. This is a good investment platform.

3. Most cryptocurrency wallets are available which makes online shopping and money transactions easier.

4. Cryptocurrency is not controlled by any monopoly. Therefore, the value of this currency is less likely to fall.

5. There are many countries where capital is not controlled. That is, there is no limit on how much money can be brought into the country and how much can be sent out. Therefore, by purchasing cryptocurrency, it can be easily sent out of the country and converted into money.

6. The biggest beneficiaries of cryptocurrency are those who want to hide their wealth. Therefore, cryptocurrency has emerged as the best platform to hide money.

7. Cryptocurrency currency is completely safe. For this you have to authenticate, because such currency is based on blockchain.

Disadvantages of cryptocurrency:

1. The biggest disadvantage of cryptocurrency is its non-physical existence, as it cannot be printed. No notes of this currency can be printed, no bank account or passbook can be issued.

2. There is no country, government or institution controlling the cryptocurrency, due to which its value fluctuates greatly. Its value sometimes rises and sometimes falls sharply, which makes investing in it risky.

3. It can be easily used in misdeeds like arms purchase, drug supply, black market as it is used only between two people. So it can be dangerous.

4. There is also the risk of being hacked, but blockchain hacking is not easy. It has a complete security system, although it is difficult to completely prevent hacking as there is no owner of the currency.

5. Another disadvantage of this is that if there is any mistake in the transaction, it cannot be corrected. If an overpayment is made by mistake, the user cannot return it, which can lead to huge losses.

Cryptocurrency legal or not?

Is cryptocurrency that is not under the control of any regulatory body legally legal or illegal? This is a question that is playing on the minds of many. The answer is relative. Its validity depends on the country in which you are using it. The reason why its validity depends on the laboratory is that it is not recognized by all the countries of the world.

In some countries, cryptocurrency is still not legally recognized, of which Nepal is one. Similarly, some countries have placed it in the "gray zone", meaning that it has neither been formally banned nor its use recognized.

Recently, Russia, China, Bolivia and other countries have banned crypto. However, even in prohibited countries, these crypto-mining activities are being carried out underground, the agencies said. Although the Chinese government has banned crypto mining, data from Chinese cybersecurity company Qihoo 360 shows that underground crypto mining is still alive in China. In a November report, the research team estimated that there were an average of 109,000 active crypto-mining IP addresses in China on a daily basis. 

End of cryptocurrency!

Recently, the world's financial regulatory bodies have been working to end cryptocurrency. The main reason for this is that it is almost impossible to control and regulate crypto. If everyone in the world adopts crypto, the power of the world's central banks will become very weak because at that time the use and justification of physical currency will be lost. Financial regulators are mired in cryptocurrency due to their fear of power erosion and continuous rise of crypto.

Although the use of crypto has ended legally in many countries, financial regulators are unable to stop underground investment in it. The main reason for this is that even the high ranks of financial regulators and government offices invest in cryptocurrency. Catching small crypto-investors to show off (as if to abide the law) will go on and illegal crypto-investing will also go on. It's like this! What can be done!

1.45% of Nepal's total population invests in cryptocurrency

Neighboring India has announced that it will launch its own cryptocurrency next year. Presenting the budget for the new fiscal year on Tuesday, Indian Finance Minister Nirmala Sitharaman announced the introduction of digital currency and a 30 per cent tax on the proceeds from crypto transactions.

In Nepal, cryptocurrency trading is legally prohibited. But according to a recent public report, millions of Nepalis have been found trading in such intangible currencies. Singapore's crypto payment gateway 'Triple A' has recently released a new report on cryptocurrency users around the world.

According to the report, 1.45 percent of the total population of Nepal has invested in cryptocurrency. The number of people investing in cryptocurrency in Nepal is around 424,000. It is said that big businessmen and high ranking officials of Nepal have also invested in crypto. When investing underground going in this way, the regulatory body is only catching small crypto agents to show that it has complied with the law. In order to get to the root of crypto in Nepal, the big fish that invest in it have to be caught so that the law of crypto-prohibition will be followed properly.