All About India’s Rumored Crypto Ban Draft 2020
By: Suraj Dubey
Tags: Cryptocurrency News, Crypto, Bitcoin, India Cryptocurrency Ban, Cryptocurrency

The draft highlights The Indian Government reconsidering banning cryptocurrency and illegalities in bitcoin trading.

But in my opinion, it is just a draft which was written by people having a one-sided opinion regarding decentralized ventures. There also are some prevailing articles that somehow direct us to a note which says, the finance ministry is seeking consultations from other departments in this regard.

There’s a lot of assumptions on this topic so before we fall into some trap or get manipulated by the internet let’s dive into some insights.

India and Cryptocurrency

India has gone back and forth every now and then regarding the ban on cryptocurrencies. As far as I know, this is the 8th draft regarding the crypto ban in India. We won’t be surprised if by the end of summer we get to know government applauding and praising cryptocurrency.

The normal thing that is coming up in conversations when pertaining to bitcoin and another cryptocurrency is that “they are too risky.”

Nevertheless, it has been noted that the major reasons for the failure of cryptocurrency establishment in India are:

Yes, these are real risks but when we dig a bit deeper and find out the root cause of Indian Banking failure we find that the reasons are quite transparent.

In essence, the sloppy regulatory oversights, weak supervision, absence of accountability, susceptibility to misuse by prominent figures, and the ineptitude to learn from past mistakes keep adding to the woes of the financial system.

As in this article.

Whilst it has nothing to do with bitcoin or cryptocurrencies being used, rather it has to do with the Indian Government being obsessed about protecting and aiding its citizens.

After reading a few papers and articles, I found that the central authorities want to maintain as much control as possible when it comes to the country’s finance. Moreover, the losses that crypto can cause to the fiat currencies are undeniable.

The Crypto Potential

There are a few countries that have banned cryptocurrencies and still, there are millions of dollars of transactions happening per week.

We have all spoken negatively about Bitcoins at some point but doesn’t it seem odd that people are still buying and trading cryptocurrencies.

‘5 million Indians own crypto.’

Read more…

Let’s analyze the potential of bitcoin monetarily;

In another way;

If you invest Rs 50,000 at the start of the year;

Gold 55,000 +10%

S&P 500 50,000 0%

Silver 48,500 -3%

SENSEX 42,000 -16%

NIFTY 50 41,500 -17%

Crude Oil 15,000 -70%

#Bitcoin 68,000 +36%

These are tentative figures.

Stats say everything about the potential.

Undoubtedly the underlying technology “Blockchain” has the brightest future ahead.

The Crypto exchange Binance Group has set up a $50 million (Rs 370 crore) blockchain technology fund for India, weeks after the Supreme Court struck down the curbs on cryptocurrency trade in the country.

I really wonder what might the startups planning to grab the opportunity are up to now even though the ban on crypto is fragile yet.

All those who have put their hand in the crypto space have realized that this thing has a lot of potential in the future. All of this comes down to the fact that people have been found using crypto even if they have been told not to and the same might happen in the future.

Conclusion

A complete ban on cryptocurrency cannot be a solution.

Taxing crypto can be way out in some sort so that the control is still maintained while having direct or indirect control over it.

This topic goes so so deep…

The word is in the hype and we should not fall for the attention-grabbing flamboyant articles and news.

A bill has to go through various stages to get approved so it can be rejected at any of the stages before being approved. Note that despite the bans and restrictions, these laws have not eradicated Bitcoin or other cryptocurrency trades and their usage. Due to the nature of decentralized cryptocurrencies, it is simply impossible to ban them.

These were all opinions and thoughts. If this article helped you in some way share it and reach out to me for suggestions and recommendations.

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Thank you.