After months of speculation about the Indian government’s stance on Bitcoin, the country finally seems ready to denounce Bitcoin and many other cryptocurrencies by banning them as recognized national payments.
The move follows China’s decision to impose a similar ban earlier this year, but completely contradicts El Salvador’s public acceptance of Bitcoin, challenges the World Bank by making it legal tender and even announcing its intention to do so “Bitcoin City” at the base of Bitcoin to build its volcano.
Dr. Francesc Rodríguez Tous, professor of banking at the Center for Banking Research at Bayes Business School (formerly Cass) believes that even the largest countries in the world, like India, are China, they are powerless to stem the tide of payment movements – digital.
Cryptocurrencies were born to evade the monopoly of the governments that issue currencies, so expect some setback, said Dr. Rodríguez Tous.
“However, India’s power as a global player will not stop trading in cryptocurrencies either. The trend towards digital payments is irreversible, so many governments are considering issuing or issuing central bank digital currencies. India’s skepticism about Bitcoin and other cryptocurrencies is likely motivated by two things: protecting national supplies and a quiet ambition to develop and strengthen its own indigenous cryptocurrencies.
Although measures like these seem to limit the use of banned cryptocurrencies and thereby reduce their value, there are generally ways to circumvent these bans so that I cannot see permanent damage to the value of digital payments. In addition, very few countries have imposed total bans, so this is not yet in great danger.
“Several major economies are speaking out against Bitcoin and cryptocurrency in general, but I don’t think India’s stance is part of a coordinated effort to undermine this.
“In many countries, high exposure to volatile capital flows and outdated banks means that cryptocurrencies can significantly reduce transaction costs while having little impact on government monetary systems. This is because they are already heavily invested in Federal Reserve stocks ”.
