Cryptocurrency This Week: Crypto Ban Will Mar Blockchain Innovation, Industry Tells Indian Govt

A whitepaper ready by the Internet and Mobile Association of India makes use of India’s well-documented ambitions to climb up the Global Innovation Index (GII) rankings as a crutch to make its case as to why a ban on crypto can be a nasty thought

The doc claims that crypto may very well be instrumental for micro-finance, due to its underlying options corresponding to transparency, pace and low transaction prices

In 2020, Bitcoin provided a 302.79% return on funding (ROI), as in comparison with NIFTY 50 at 14.77%, Sensex 30 at 15.60% and NIFTY Small Cap 100 at 20.62%

In India, there are over 200 blockchain startups with a lot of them working within the cryptocurrency area. In 2017, India’s crypto trade was estimated to have a cumulative value of nearly $13 Bn. That was earlier than the Reserve Bank of India’s banking ban on cryptocurrency firms. Since the lifting of the ban, a few of India’s famous cryptos startups have reported a 400% increase in trading volumes and user signups. Another ban will distort the trade and adversely have an effect on the startups in India.

These are a few of the key observations made in a illustration despatched by a few of India’s main crypto firms, together with these based overseas, to RBI and the Ministry of Finance final week, in a bid to assuage the federal government’s issues with cryptocurrency and persuade it to rethink an entire ban on crypto. 

The illustration, a whitepaper ready by the Internet and Mobile Association of India’s Blockchain and Crypto Assets Council, makes use of India’s well-documented ambitions to climb up the Global Innovation Index (GII) rankings as a crutch to argue why a ban on crypto can be a nasty thought. The doc highlights that banning crypto’s legit use instances would imply throwing in the towel in exploring rising the usage of rising applied sciences corresponding to blockchain and synthetic intelligence (AI). 

The doc makes additional factors about how bans in India typically result in the proliferation of a shadow market, citing examples of India’s ban on drones and on the import of gold, each of which have been later overturned and laws introduced in. More details about these two factors could be learn here

Other causes given in favour of cryptocurrency embrace their potential use for enhancing monetary entry. The doc claims that crypto may very well be instrumental for micro-finance, due to its underlying options corresponding to transparency, pace and low transaction prices. It additionally talks about crypto wallets that can be utilized to switch or obtain cryptocurrencies for these with out a checking account, to make sure sooner remittances. Although, advocating the usage of cryptocurrencies for home remittances for the un-banked inhabitants doesn’t assist anybody’s case, contemplating the low diploma of economic and tech literacy, in addition to the risky nature of cryptocurrencies. Moreover, UPI fee apps have already emerged as a handy answer for the peer-to-peer switch of funds. Perhaps, sooner remittances might be one of many distinguished use-cases of RBI’s deliberate Central Bank Digital Currency (CBDC). 

The doc then compares Bitcoin with India’s inventory market indices to focus on its usefulness as an asset class. In 2020, Bitcoin provided a 302.79% return on funding (ROI), as in comparison with NIFTY 50 at 14.77%, Sensex 30 at 15.60% and NIFTY Small Cap 100 at 20.62%. 

“In a regulated market, crypto exchanges will play a crucial role by ensuring compliance to KYC and AML guidelines and mitigate illicit activities in digital currencies. The rise of cryptocurrencies and blockchain is an exciting opportunity, and India should look to capitalise on the ground-breaking potential of this technology to advance its global position as an IT power,” the doc sums up. 

Global peer-to-peer crypto change Paxful defined why main crypto firms needed to draft a 23-page doc and current it to the federal government, to make their case for crypto. 

“What we see around the world is that because cryptocurrencies are a new concept for many people, there are a lot of misconceptions. For example, one of the major concerns voiced by the Indian government is about safety and how to ensure that they are not used for criminal purposes. Because cryptocurrencies are powered by blockchain technology, they are inherently transparent. In addition, they can be regulated like fiat currencies so we’d recommend strong Anti Money Laundering(AML) measures,” a Paxful spokesperson informed Inc42

“A communication gap meant that maybe the cryptocurrency industry was unable to engage with policymakers and answer any questions and concerns. It’s important for there to be open dialogue so we can share knowledge and experience and work together on what’s best for India,” the spokesperson added. 

Bitcoin & Ethereum Prices

At the time of writing, Bitcoin was buying and selling at $58,735, a 0.87% decline in value over the past seven days. 

Ethereum was buying and selling at $2,118, a 14.62% enhance over the past seven days. 

Other News

WazirX Crashes 

Leading Indian crypto change WazirX crashed on Sunday night time, a fault the corporate attributed to excessive buying and selling volumes and the corporate’s present backend infrastructure unable to deal with the identical. The firm’s founder and CEO Nischal Shetty acknowledged the identical on Twitter. “No matter how much you prepare for traffic, some system loads are crazy. Wallet is safe, yes. The load on our systems are way too much. Scaling is taking longer,” he wrote. 

Crypto Market Cap Cross $2 Tn As Ethereum Surges

The worth of the cryptocurrency market topped $2 Tn for the primary time on Monday. Talking about the identical, CoinDCX founder and CEO Sumit Gupta mentioned: “One of the prime examples of large institutional investment is the latest bitcoin purchase worth $15 Mn by Microstrategy. We have noticed that investors are heavily looking at other cryptocurrencies and moving beyond Bitcoin and Ethereum. It is indeed a decisive vote of confidence on the entire cryptocurrency asset class. Cryptocurrency as an asset class has always managed to outperform the traditional asset class massively and grow even in these uncertain conditions.”

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