Is the beginning of the end for crypto in India?
India Again Discussing a Crypto Ban
The country has been going back and forth regarding a potential crypto ban for well over a year now, but it seems we’re getting closer and closer to the reality of a crypto-less India. A government panel is now moving forward with its recommendation of a full ban on private cryptocurrencies, along with ten years in prison for all individuals who engage in crypto-based activities.
It can be argued that India doesn’t quite know what it’s doing. As a country with limited means when compared with the U.S., China and most major points of Europe, India is a nation that would likely benefit greatly from cryptocurrency use. Digital currencies are largely decentralized and would give many of India’s people the opportunity to take care of themselves through currencies that are not controlled by any bank or financial institution.
Users would not need to garner appropriate credit or industry recommendations. The money would be in their accounts in relatively short periods and they’d be free to use it without restraint.
Nevertheless, India is allegedly not listening and once again relying on the age-old argument that crypto is responsible for illicit activity such as tax evasion and money laundering. It’s strange how so many people – even President Donald Trump – are unable to let this argument go.
The panel in question has submitted a report suggesting that cryptocurrencies, as they stand, have no “underlying value.” However, it is stating that while doing away with all standard crypto is necessary, the Central Bank of India should examine the prospects of creating a national, digital rupee. Presently, the rupee is the country’s official cryptocurrency, and the panel is suggesting digitizing it to potentially lessen the chance of fraud in the future.
What the panel probably doesn’t realize is that this wouldn’t protect against such problems. In addition, a nationalized cryptocurrency would hardly be crypto at all. A coin of this nature would be largely centralized or controlled by the banks that issue them. Thus, many would be prevented from getting their hands on it. They wouldn’t be able to live or survive the way they could with standard or mainstream forms of crypto like bitcoin, Litecoin and Ethereum.
Interestingly, many experts agree that India would be making a huge mistake if it were to enforce a full ban of cryptocurrencies. Sathvik Vishwanath, the co-founder of Uno Coin, explained:
If the government decides to take such a drastic step, then India will stand to lose out significantly on the technology front.
Many Think This Would Be a Bad Idea
Nischal Shetty, CEO of Wazir X, seems to agree. He explains:
Banning cryptocurrencies is a regressive step and no country or government should ban a new technology such as this.