Prime minster Narendra Modi is about to start his second term, and he’s already off to a negative start in the eyes of most crypto investors. Modi is looking to potentially continue the bitcoin and cryptocurrency ban of his native India despite the ban’s growing unpopularity.
Don’t Make a Crypto Mistake, India
India is a country that stands to gain a lot from cryptocurrencies, yet the nation’s central bank has sought to end all trading activity. It is also preventing smaller and local banks from doing business with cryptocurrency companies. This puts a huge damper on innovation and technological growth within the region.
Aayush Goyal is a cryptocurrency investor. He says that most of the public is worried about which direction the country will move in when it comes to digital assets:
’Will there be a ban?’ is on top of the minds of most (crypto) investors in India right now, and people are discussing it and getting stressed out over it. Nobody knows as of now, but everyone is hoping there is no blanket ban.
A ban on crypto could potentially put India behind when it comes to financial and tech advancement. A lack of crypto usage means lagging education regarding blockchain applications and operations. In addition, other neighboring countries will have an opportunity to move ahead in terms of financial growth and regulation.
Nischal Shetty, founder and CEO of Wazir X, a cryptocurrency exchange based in Mumbai, claims:
Everyone is confused about it, and that is very evident. There have been mixed signals and, while a lot of people are scared, some also believe India, a progressive nation in the world of finance, will not abruptly ban it. But then, no one knows.
The good news is that everything at press time is pure speculation. India hasn’t said if it will continue to enforce the ban, and it hasn’t said if it won’t. Right now, it appears that most analysts, industry leaders and investors are simply jumping to conclusions given that India instilled the ban in mid-2018, but it’s foolish to automatically assume that the country will just continue to implement it without thought.
A detailed report regarding potential crypto and financial regulation updates will be submitted to India’s Finance Ministry in the coming weeks. An official decision is slated to come about by early November. That gives traders approximately five months to prepare.
A Crypto Ban Could Be a Big Problem
Sathvik Vishwanath, founder of the cryptocurrency exchange Uno Coin, explained:
It is not unlike India to take the drastic measure of implementing a complete ban. We have seen such instances happen in the past as well. However, it will be detrimental for India if such a step is taken.
India has commented that while it has interest in blockchain, it is not a fan of digital currency.