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Bitcoin: India ready to ban all cryptocurrencies!

Often the India the “new China. Referring with this meaning to the fact that it is economically growing at its own pace.

Although, compared to the latter, it pays some starting limits, which constitute real ballast for a possible overtaking. Like the stills huge social contradictions which persist there (also for religious reasons, this country being divided into castes) as well the instability of the surrounding area (think above all of Kashmire). Compared to China which can count on countries “orbit“very developed, like Hong Kong, Taiwan and so on.

Even at the level of population we are there, given that China it slightly exceeds one billion and four hundred thousand inhabitants, while India touches them just as little.

However, the conditions are all there for India to have its say in the future in terms of leadership of the world economy. Also because it is one of the more advanced countries in terms of computer science (he churns out a large amount of talented engineers every year) and also militarily he has his say by owning the atomic bomb.

And it has also become an important country when it comes to the use of cryptocurrencies. Which, for a country that boasts almost one and a half billion inhabitants, can only do “pleasure“to the rise in the price of Bitcoin.

However, the news that is circulating in these hours it’s not really the good ones. Indeed, it risks having just the opposite effect. Causing a collapse in the price of Bitcoin.

In fact, the Indian parliament is ready to largely ban the use of cryptocurrencies in the country, albeit with some concessions. Let’s try to understand more.

India ready to ban cryptocurrencies

As Techcrunch reports, India is planning to introduce a bill banning the use of “all cryptocurrencies for private use“. The bill is part of the winter parliamentary agenda.

However, at the “threat“An opening also followed, given that the government of the country that gave birth to the great Gandhi he also reassured investors by stating that the law proposal will foresee “some exceptions“to promote blockchain and its economic applications.

Moreover, India knows well, from the height of its knowledge in technological matter, that it is difficult to completely deprive oneself of a technology like the Blockchain. At the base, above all thanks to the invention of the revolutionaries smart contract, of the Decentralized Finance (DeFi) which is advancing more and more. And precisely it, which aims to become more and more world economic leader, cannot deprive itself of this fabulous tool.

The bill is called Cryptocurrency & Regulation of Official Digital Currency Bill 2021. And it will also aim to create a “facilitator framework“to make a official digital currency for the country. Therefore, the aim is probably to limit the use of various cryptocurrencies among private individuals, to allow the mass use of a cryptocurrency managed by the central bank of India (la Reserve Bank of India) and from the government, that circles parallel with that having legal tender (the Indian rupee).

India Vs Bitcoin: yet another proclamation without a sortie?

However, as TecnoCrunch always points out, the bill is practically equal to the proclamations launched by the Indian government earlier this year. The next winter session of parliament begins on November 29.

After all, they are now different months that Indian lawmakers argue about measures to be taken compared to cryptocurrencies. And work has also been done for some time on a national digital currency, controlled by the central bank. A bit like China or Russia have been meditating for some time, more recently the United States and El Salvador actually did.

To be fair, however, the Indian Premier in office Narendra Modi, has woven several encounters with legislators and stakeholders of the sector precisely to discuss the passing of a law.

In general, discussions within the government are intense with a leading venture capitalist and he has suggested that India is likely to formulate a law that will support cryptocurrency innovation. rather than ban them. Also to go in contrast with what China is doing, which, instead, has launched a squeeze since 2017. Gradually banning various aspects of the crypto universe: first ICOs, then mining and finally trading.

Under the Indian government’s magnifying glass, however, there are also those it has called the “irresponsible advertising“that promised incredible profits to users even without any experience in the matter.

In fact, the explosion of cryptocurrencies also brought with it the concomitant explosion of another phenomenon: the growth of scams. By creating fictitious platforms that act as empty boxes where the user on duty, in good faith, puts his money, bewitched by incredible profit promises and able to get him out of his economic gains. When in reality, not only will he not even see $ 1 of those profits. But not even his capital back.

Unfortunately, a bit of what is happening in the US with several stars (including Kim Kardashian and various famous reppers), also in India the VIPs they are dedicating themselves to promoting these platforms. Obviously, behind hefty remuneration. Think of the several Bollywood stars, including the legendary Amitabh Bachchan, but also actors of the caliber of Ayushmann Khurrana and Ranveer Singh.

One of the ways to lure potential investors used by these platforms is also to use the faces of famous people by reporting statements that they never said. So without their knowledge. Some are real “must“, like Elon Musk, Donald Trump, Bill Gates. While in Italy the faces of Antonino Cannavacciuolo, Barbara D’Urso, Daniele Badini, Lorenzo Cherubini (aka Jovanotti), Valentino Rossi, etc.

It is one thing that these characters are used without their knowledge and another thing is that they explicitly promote these scams for good money. Not surprisingly, recently Instagram has launched a close regarding advertisements for platforms based on cryptocurrency trading. Which were now flooding the stories of users. Any story for advertising purposes will have to indicate this explicitly. TikTok also did something similar.

But there is also another risk that worries the Indian government and the Reserve Bank of India: the use of cryptocurrencies to finance illegal activities such as arms trading, the illicit money laundering or the subsidizing terrorist groups. Fears that, moreover, belong to all central governments and foment their tendency to distrust these digital assets.

Cryptocurrency fever is growing in India

The fact is that in India it is increasing the number of Indians investing in cryptocurrencies. People who until then – as is happening in other parts of the world, also thanks to the ease of entry into the markets offered by apps on smartphones – he had never invested in the stock market or other asset classes.

Something that looks a lot like what happened in South Korea (another country with a strong attitude towards technologies) in 2017, triggering the Bitcoin price increase. Until the South Korean government, in January 2018, he was not forced to launch one drastic close. This had quite a few negative repercussions on the price of Bitcoin.

In India, cryptocurrency exchanges have seen ever-increasing volumes of transactions. So much to yield monstrous figures. The exchanges most used by Indians to invest are: CoinDCX, CoinSwitch Kuber and Coinbase Ventures. Which, of course, will certainly not be enthusiastic about the news.

Bitcoin price plummets in India

The news immediately had heavy repercussions on the price of Bitcoin in India. As The Block Crypto reports, bitcoin on WazirX at the time of writing it was trading at approx 40.90.000 Indian rupees (around $ 54,900). While $ 56,750 on Binance, a difference of over 3%, somewhat high.

The collapse was noticeable in the hours following the spread of the news, by 15%. What is it due to? To the fact that some users have entered into what in the jargon is called “panic selling“, that is the sale generated by panic triggered by some bad news.

Meanwhile, investors are circulating contrastant newsi, fomented by a mix of hope and fake news. For example, it is said that by private coins in the bill is meant Monero (cryptocurrency that has always stood out for the high privacy it offers to those who use it, so much so that it is accused of being used for illegal purposes) rather than more widely used and recognized cryptocurrencies such as bitcoin and ethereum.

However, the most widespread fear, which is triggering the Indian panic selling, is that by private cryptocurrency we mean precisely all cryptocurrencies except that issued by the central bank.

However, it is not the first time that cryptocurrencies in India have suffered a collapse like the one underway, caused by Panic selling. As The Crypto Block always remembers, something similar has already happened in the course of 2017. When the deceased Arun Jaitley, who at the time held the position of finance minister Indian, claimed that the incumbent government did not recognize bitcoin as legal tender.

CNN recalls instead how the following year, the central bank banned Indian banks from dealing with exchanges of cryptocurrencies. Always for the same reasons. Two years later, however, the Indian Supreme Court overturned that order.

Modi, in fact, had already compared cryptocurrencies to “Ponzi schemes“(also called multilevel or pyramid system, where the profit is not given by the sale of goods or services but by the entry of new people introduced into the system). There is also the insistent rumor that the government could plan fines”to anyone trading in the country or even holding such digital assets“.

Copywriter, born in 1981.
Born in Naples and therefore I like the sea“said the great Pino Daniele and how to blame him. This city gives you great creativity and molds you against the adversities of the world, as complicated as it is beautiful. I trained at the note Federico II University of Naples.
I love to write, watch movies, cheer for Inter, because I always complicate things!
For some years I have been involved in economics, while not losing my university background: Sociology. So, giving the arguments, however technical, a social edge.

My motto is? “Live each day as if it were the first”.

Kim Lee

Kim is a Chinese girl and has studied in England. Kim loves playing video games, she likes Fortnite games. Kim likes Hollywood movies. Kim's English is very good, so she became a writer. Email : kim@d1softballnews.com

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