Reasons For India To Not Ban Cryptocurrencies
India is on its way to coining a digital rupee and yet, at the same time, it is making provisions to outlaw the possession of cryptocurrency. If this law came into being, you could have to serve jail time if you were caught in possession of crypto. As such, the Reserve Bank of India has already banned cryptocurrency. India should be more pragmatic and consider using crypto payments for foreign transactions.
Cryptocurrencies have earned themselves a bad reputation due to their market instability. But not all virtual currency based on blockchain technology are the same. There’s the stablecoin, which is a more reliable alternative as its value is linked to flat currency and is regulated by banks like any other financial asset. With stablecoin, you’d be able to carry out international exchanges where a US stakeholder isn’t involved without having to use the dollar at all.
As much as we may be loathe to admit, no international financial transaction today can be made without using the dollar. Banks too cannot afford to deal without the USD. The Americans can wield this dollar supremacy around and have other nations at their beck and call. The stablecoin enables people here to carry out financial transactions even without using the USD as a medium.
Creating a payment mechanism that can tackle this dollar supremacy is no less than a political task. It is only possible today by using blockchain-based currency. When India refuses to take part in such an exercise, they are in essence making a political statement by not participating in a coalition of non-US nations to overthrow this hegemony of the dollar.
Sure, money laundering and heists are very real threats with blockchain currency, but these can be managed if all heads were to be put together to come up with solutions for the same. India should be a leading voice in decrying such a monopoly of the global financial system than bowing out of the race.
Gustavo Fonseca loves anything digital and crypto-related which makes him sit up and pay attention. He got into the world of digital marketing and business digital transformation career in 2010. Some time later he got into Crypto, a dynamically developing segment at the intersection of the financial services and technology. Gustavo joined TheDailyCoins in September 2018.