Former Coinbase CTO Balaji Srinivasan believes that banning cryptocurrencies in India will lead the country to further poverty. India could suffer trillions of dollars in losses.
Earlier, it was reported that in the near future a bill would be presented to the Indian parliament that would completely ban the use of cryptocurrencies in the country. Crypto asset holders allegedly have several more months to convert their digital assets to fiat currency. However, if the digital rupee is launched, this ban will not apply to it. In an interview, Balaji Srinivasan said that a complete ban on Bitcoin and altcoins would only redirect cryptocurrency trading to nearby Asian markets.
“It is very important that the upcoming ban on ownership, trading, mining and investment in cryptocurrencies is not implemented in India. Such a mistake would cost India trillions of dollars, and I am not exaggerating at all. If this bill is passed, India will become 20% poorer in five years compared to the current economic situation, ”said Srinivasan.
Former general partner at investment firm Andreessen Horowitz said it could be compared to “banning the Internet.” While such a ban is aimed at all cryptocurrency holders, it could have an even more negative impact on cryptocurrency firms. Through the use of cold wallets and the ability to control their keys, Indian users will be able to bypass “anti-crypto” legislation. However, when trying to withdraw funds, people will sooner or later face difficulties. Indian Finance Minister Anurag Singh Thakur recently stated that the government is leaning more towards regulating cryptocurrencies rather than outright bans.
Recall that this month, the Central Bank of Nigeria (CBN) also took drastic measures, barring commercial banks from serving the accounts of cryptocurrency firms. The central bank’s actions have not found support among Nigerian lawmakers, who have called on the CBN to better regulate the industry.
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