Former Coinbase CTO Balaji Srinivasan believes that banning cryptocurrencies in India will lead the country to even greater poverty. India could suffer trillions of dollars in losses.
Earlier, it was reported that in the near future, a bill will be submitted to the Indian parliament that completely prohibits the use of cryptocurrencies in the country. Holders of crypto assets allegedly have a few more months to convert their digital assets into 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 will only redirect cryptocurrency trading to the nearest Asian markets.
“It is very important that the upcoming ban on owning, trading, mining and investing in cryptocurrencies is not implemented in India. Such a mistake would cost India trillions of dollars, and I’m not exaggerating at all. If this bill is passed, India will be 20% poorer in five years compared to the current economic situation,” Srinivasan said.
The former general partner of the investment firm Andreessen Horowitz said that this could be compared to a”ban on the Internet”. Despite the fact that such a ban is aimed at all cryptocurrency holders, it can have an even more negative impact on cryptocurrency firms. Thanks to the use of cold wallets and the ability to control their keys, Indian users will be able to circumvent the “anti-currency” legislation. However, when trying to withdraw funds, people will sooner or later face difficulties. Recently, Indian Finance Minister Anurag Singh Thakur said that the government is more inclined to regulate cryptocurrencies, rather than a complete ban.
Recall that this month, the Central Bank of Nigeria (CBN) also took drastic measures, banning commercial banks from servicing the accounts of cryptocurrency firms. The central bank’s actions did not find support among Nigerian lawmakers, who called on CBN to more thoroughly regulate the industry.