India's plan to ban Bitcoin faces resistance as its crypto supporters fight back
The crypto industry in India has finally received strong support as the influential industry evangelists are evoking the vision that a billion smartphones are providing access to the world of DeFi (Decentralized Finance).
Mobile banking has indeed emerged as a way to amend financial conflicts, a chronic problem in all emerging markets. In India, monthly payments via wireless devices are almost $60 billion, three-fifths more than ATM withdrawals. Just a year before, cash was ahead by 37%.
As India has been through remarkable adoption in mobile payments, the bureaucracy has developed a phlegmatic resistance to newer ideas. Bitcoin and other cryptocurrencies categorised as instruments of money laundering which offers no real benefits. The country’s blockchain space, survivor of an attempt on its life in 2018, is growing up but with a strange fear. According to media reports, a new law might ban all private cryptocurrencies along with tokenized representation of money unless it is the central bank’s own digital money.
To fight to prevent the ban, the Indian tech industry is joining the march and speaking on behalf of blockchain entrepreneurs.
Before imposing an impractical ban on cryptocurrencies, The arguments should give policy makers a pause to think about the crypto users have already embraced tokens and have put so much effort into the industry. Along with that, India is of late providing more volume than China on popular peer-to-peer platforms of Bitcoin and transactions of other digital assets.
The Reserve Bank of India tried to cut off the digital-asset industry’s links to local bank accounts in 2018, but now there are chances that authorities will propose a compromise and will undoubtedly push back.
China is in plan to launch its official digital currency, e-CNY, next year. India, meanwhile, is still debating whether it can employ blockchain technology in social projects like land registry while barring tokens from circulating as money.