India is one of the fastest growing nations. The economy ay be sluggish but the focus on the Information communication sector is putting it on the global map again. The country has produced some of the most creative people we see around in terms of art, music, literature and ICT.
The country is being ruled by extreme parties that continuously undermine its underpinning democratic system and due process. The radical misogynist, right winged government, seems like the trend globally. Well, it means worse things for the nation than what it may mean in any economy that is better off.
We know of Indians through entertainment industry, Netflix comedians and activists like Kumail Nanjiani, Hassan Minhaj and Aziz Ansari, well it is funny, that the picture they paint of this tech centrist eastern startup hub is actually being pushed to cut out cryptos from their lives. Why? Because the enforcement system is too weak and the government wants to reduce its duty by limiting people.
The country is already a democracy only for the documentation and label sakes. The process is highly corrupt and compromised, the people raise their voices but mafias both the governmental and the criminal ones shut them out. The public is becoming woke by day. The public is searching for their dream startup ideas and the answers that most will find will use blockchain and cryptos to begin with, the government is taking away these dreams from the people. The right to dream, envision and to create is being taken away and people will not let that happen.
In the Modi Government regime’s defense it is to curb organised crime and dark economy. But, as we all know ‘attempts to ban virtual currencies could only fuel money laundering, illegitimate transactions, and tax evasion’ people have warned them.
This is the irony, the government is under-informed, not qualified to make this decision, just like any other government around the world who might have invested more effort and brain power in wining elections, working to be good listeners, better debaters, they forget how to be good people’s representatives. They forget that they are the servant of the public opinion appointed by the public.
But, alas, they rarely remember with their goldfish memory spans, oops goldfishes, no offence to you.
The government officials and law makers even those of the social media, digital piracy and intellectual property, data and communications, all low very little of what they are working around, and that is not just in India, it is also true for countries like the U.S. where Mark Zuckerberg could let lose in a trial because of an inadequacy of the prosecutor to to pick his smart answers.
Currently, there are approximately 10 large crypto-exchanges in India with an estimated user base of nearly 5-6 million. The government is targeting these. No exchanges, no bitcoins? Not really!
There are ways to avoid that. Crypto-investors may resort to peer-to-peer channels to transfer their investments into the overseas exchanges. This means greater surveillance will be needed, isn’t that more work gov?
The price volatility, the complex nature of these digital assets, and chances of consumer frauds are major pain points.
Considering all transactions will be in cash in a parallel economy, money laundering and such unlawful activities will increase, which will be even tougher to trace in case of a ban.
Ironically, the only way these activities can be controlled better is under a regulated framework. Duh, no Only if governments understood it globally, Its okay that people do not. 😉 They always find a way to get theirs!